Rise of Options Trading ( latest update – 2021 )

Source credit : https://www.wsj.com/articles/individuals-embrace-options-trading-turbocharging-stock-markets-11632661201

By one measure, options activity is on track to surpass activity in the stock market for the first time ever.

In 2021, the daily average notional value of traded single-stock options has exceeded $432 billion, compared with $404 billion of stocks, according to calculations by Cboe’s Henry Schwartz. This would be the first year on record that the value of options changing hands surpassed that of stocks, according to Cboe data going back to 2008.

On average, Apple options with a notional value of more than $20 billion have changed hands daily this year, compared with roughly $12 billion of the iPhone-maker’s stock, according to a Wall Street Journal analysis of Cboe data. About $80 billion of Tesla options have changed hands daily this year, roughly quadruple the figure in the stock.