Trading volume in options

Kiger, J. Manaster, S. Morse, D. Ou, J. Sepe, and N. Patell, J. Schacter, B. Skinner, D. Stephan, J. Varian, H. Download references. You can also search for this author in PubMed Google Scholar.

Reprints and Permissions. Philbrick, D. Trading volume in options and common stock around quarterly earnings announcements. Rev Quant Finan Acc 3, 71—89 Download citation.

Issue Date : March Search SpringerLink Search. Abstract This study examines trading in call and put options around quarterly earnings announcements and investigates whether the existence of these options affects the common stock trading volume response to these announcements. Immediate online access to all issues from Subscription will auto renew annually.

References Bamber, L. Google Scholar Bernard, V. Google Scholar Black, F. Article Google Scholar Brown, S. Article Google Scholar Christie, A. Article Google Scholar Cox, J. Google Scholar Epps, T. Article Google Scholar Froot, K. Article Google Scholar Hakansson, N. Google Scholar Holthausen, R. Google Scholar Hughes, J. Google Scholar Karpoff, J. Article Google Scholar Karpoff, J. Much of the increased activity in came from individual investors, many of them new to options trading and often buying and selling just a single contract.

Each option contract covers shares of stock. Individual investors gravitated toward call options—which give holders the right to buy a stock and thus amount to a bullish bet.

And most of those contracts were short-dated at less than a month until maturity. All this reflects the bull run from the stock-market low in March and the growing popularity of options trading on online trading platforms like Robinhood. Daily call volume averaged Schwartz notes that the number of option trades averaged four million a day during , up from 1.

Schwartz says the option trading boom reflected the work-from-home phenomenon, zero-cost trading, and the growth of online brokers. You have to assume that customers are trading because they can make money. Some of it is luck with the great bounce from last spring. But some of them have figured out how to manage risk and those participants may be permanent.

Write to Andrew Bary at andrew.

2021 Shattered Trading Records, 2021 is Breaking Them Again

Stock option volume took off in as individual investors piled into the market and gravitated to hot stocks like Apple, Tesla, and NIO, the Chinese electric vehicle company. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www.

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