The Latest Most Liquid Options Explained
The second most liquid option in 2021 was the Apple Inc. (AAPL) stocks, having an average volume of 1,355,480.
The statistic indicates that in 2021, the Apple Inc. (AAPL) stocks were the second most liquid option, meaning they were the second most actively traded asset in terms of volume. Specifically, the average trading volume for AAPL stocks was 1,355,480 shares. This high level of trading activity suggests that there was significant investor interest in AAPL stocks throughout the year, with many traders buying and selling these stocks on a regular basis. As a result, AAPL stocks were a relatively easy asset to buy or sell, providing investors with ample liquidity and market efficiency when trading this particular option.
The third most liquid option was AMD, hitting around 743,202 average volume.
This statistic indicates that Advanced Micro Devices Inc. (AMD) ranked as the third most liquid option in terms of trading activity, with an average volume of approximately 743,202 shares traded. Liquidity refers to the ease and speed with which an asset can be bought or sold in the market without significantly impacting its price. Therefore, a high average trading volume suggests that AMD options were actively traded, making it easier for investors to enter and exit positions in these options without experiencing significant price fluctuations. Overall, the high liquidity of AMD options implies a strong level of market interest and participation in trading this particular asset, which can be advantageous for investors looking to trade in this market.
Tesla Inc. (TSLA) stood fourth among the most liquid options in July 2021, recording an average volume of approximately 729,424.
The statistic indicates that in July 2021, Tesla Inc. (TSLA) ranked fourth in terms of liquidity among all options traded, with an average volume of approximately 729,424 contracts. Liquidity in options refers to the ease of buying and selling contracts without significantly impacting their prices. A high average volume suggests active trading in Tesla’s options, indicating a strong level of investor interest and potentially tighter bid-ask spreads, which can benefit traders looking to enter or exit positions. Overall, Tesla’s ranking as the fourth most liquid options in July 2021 highlights the significance of the company’s stock and its derivatives in the options market during that period.
Microsoft (MSFT) was the fifth most liquid option for the same period, with an average volume of 552,394.
The statistic indicates that Microsoft (MSFT) ranked as the fifth most liquid option during the specified period. Liquidity in this context refers to the ease and speed at which an asset, such as an option, can be bought or sold without significantly impacting its price. With an average volume of 552,394 transactions, MSFT options were traded frequently, suggesting high market activity and investor interest. This level of liquidity can be beneficial for investors looking to enter or exit positions efficiently, as there are likely significant numbers of buyers and sellers available in the market at any given time.
About 97% of options expire worthless and out of the money.
This statistic indicates that a very high percentage, specifically around 97%, of options contracts held by investors reach their expiration date without being worth anything (worthless) and are trading below the strike price (out of the money). This highlights the inherent risk and speculative nature of trading options, as many investors may not see their options contracts result in profitable outcomes. It is essential for investors to carefully assess and manage the risks involved in options trading, as a significant majority of these contracts typically do not yield returns for the holder.
The total options trading volume in the United States in 2020 amounted to approximately 7.52 billion contracts.
The statistic indicates that the total options trading volume in the United States in 2020 was approximately 7.52 billion contracts. This figure represents the total number of options contracts that were bought and sold within the U.S. financial markets during the year. Options trading involves the buying and selling of contracts that provide investors with the right to purchase or sell an underlying asset at a specified price within a certain timeframe. A higher options trading volume suggests increased activity and interest in the options market, which can be influenced by factors such as market volatility, investor sentiment, and economic events. This statistic provides insight into the level of derivative trading and investor participation in the U.S. financial markets during 2020.
In 2020, equities options accounted for 78% of all options trading activities, the rest being index options.
In 2020, equities options dominated the options trading market, representing 78% of all trading activities, while the remaining portion consisted of index options. This statistic indicates that individual stocks were the preferred choice for options trading over broader market indices during that time period. The high proportion of equities options trading suggests that market participants were predominantly focusing on specific company stocks rather than the overall performance of the market as a whole. This information provides valuable insight into investor preferences and strategies within the options market in 2020.
In 2010, options in ETFs represented just 30% of overall options trading volume. In 2020, they represented about 41% of total options volume.
The statistic indicates a shift in the composition of options trading volume over the decade from 2010 to 2020, with options in Exchange-Traded Funds (ETFs) gaining a larger share. Specifically, in 2010, options in ETFs accounted for only 30% of the total options trading volume, while in 2020, this share increased to about 41%. This suggests a growing popularity and utilization of ETF options among investors and traders compared to other types of options. The increasing share of ETF options trading volume reflects a broader trend towards ETF investing and the diversification and hedging strategies that investors are employing in their portfolios.
Over the past 10 years, the average yearly growth rate of options trading volume is approximately 8%.
The statistic indicates that over the past 10 years, the options trading volume has been increasing at an average yearly growth rate of approximately 8%. This suggests that there has been a steady and consistent upward trend in the volume of options being traded over the specified time period. Such growth in options trading volume may reflect increased interest and participation in options markets by investors and traders seeking to diversify their portfolios, hedge against risks, or speculate on price movements. The 8% average yearly growth rate provides insight into the dynamics of the options market and can be used by stakeholders in finance and investment to assess market trends and make informed decisions regarding their trading strategies.
The highest daily options trading volume ever recorded was on February 26, 2021 with 48.9 million contracts.
The statistic reported that on February 26, 2021, the options trading market experienced its highest daily trading volume ever recorded, reaching 48.9 million contracts. This figure reflects the total number of options contracts that were bought and sold in a single day on various financial instruments such as stocks, indices, or commodities. A high trading volume can indicate increased market activity and interest from investors, potentially driven by economic events, market volatility, or specific company news. Such high trading volumes could lead to increased liquidity and price discovery in the options market and may also signal heightened speculation or hedging strategies by market participants.
In average, in 2021, females represent approximately 25% of options traders.
The statistic that females represent approximately 25% of options traders in 2021 indicates the proportion of women engaging in options trading compared to men within that specific year. This figure suggests that there is a significant gender disparity in the options trading industry, with men comprising a majority of traders. The data implies that there may be barriers or challenges that prevent more women from participating in options trading, such as lack of representation, access to resources, or societal expectations. Addressing these disparities and promoting gender diversity in the options trading field could lead to greater inclusivity and opportunities for women in the industry.
In 2020, the total options trading volume in Asia-Pacific grew by 23%, the highest of any region.
The statistic indicates that in 2020, there was a notable increase in the total options trading volume in the Asia-Pacific region compared to other regions. Specifically, the growth rate of 23% highlights a significant rise in the number of options contracts that were traded within the Asia-Pacific markets over the course of the year. This surge in trading activity may be attributed to various factors such as increased market participation, evolving investment strategies, or changing economic conditions within the region. The statistic suggests a growing interest and engagement in options trading within the Asia-Pacific region, reflecting a dynamic and expanding financial landscape in that part of the world.
In the first half of 2021, options volume on single stocks increased by 53% compared to the first half of 2020.
The statistic suggests that the trading volume of options on individual stocks during the first half of 2021 rose significantly by 53% in comparison to the same period in 2020. This increase indicates a heightened level of interest and participation in the options market for single stocks, potentially driven by various factors such as market volatility, economic conditions, or changing investor behaviors. The growth in options volume could imply increased speculative activity, hedging strategies, or overall market activity in response to evolving market conditions. Analyzing the reasons behind this surge in options trading volume can provide valuable insights into market sentiment, investor behavior, and potential shifts in underlying stock prices.
As of July 2021, the average daily volume of options traded on the NYSE was over 4.1 million contracts.
The statistic indicates that for the month of July 2021, the New York Stock Exchange (NYSE) experienced heavy trading activity in options, with an average of over 4.1 million contracts being exchanged daily. Options are financial instruments that give investors the right, but not the obligation, to buy or sell an underlying asset at a specified price before a certain date. The high volume of options traded suggests significant market interest and participation in derivative securities on the NYSE during that time period. This level of trading activity can provide valuable insights into investor sentiment, market volatility, and potential future market movements.
In 2020, Put options accounted for about 44% of the total option contracts traded in the U.S.
In 2020, about 44% of the total option contracts traded in the U.S. were classified as Put options. Put options are financial instruments that give the holder the right, but not the obligation, to sell an underlying asset at a specified price within a certain time frame. This statistic indicates that a significant portion of options trading activity in the U.S. during that year involved investors betting on the decline in the prices of underlying assets. The higher proportion of Put options traded may suggest a bearish sentiment among investors or hedging strategies being utilized to protect against potential market downturns. Understanding the composition of option contracts traded can provide insights into market sentiment and potential future price movements in the underlying assets.
In July 2021, the options market in the U.S reached a record high daily trading volume of $1.76 trillion.
The statistic indicates that in July 2021, the options market in the U.S experienced an unprecedented level of activity with a record daily trading volume of $1.76 trillion. This high volume of trading reflects significant interest and participation in options trading during that specific time period, likely driven by various market conditions, economic indicators, and investor sentiments. The record-breaking volume suggests that investors were actively engaging in options contracts to manage risk, speculate on market movements, or enhance investment strategies. This statistic highlights the robustness and liquidity of the options market in the U.S and underscores the role options trading plays in the broader financial landscape.
Conclusion
By understanding and focusing on the most liquid options in the market, investors can improve their trading strategies, mitigate risks, and potentially achieve better outcomes. Liquidity plays a crucial role in the options market, providing traders with the flexibility and efficiency needed to execute trades effectively. Keeping an eye on the most liquid options can help traders navigate the market more confidently and make informed decisions based on reliable data.
References
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6. – https://www.www.statista.com
7. – https://www.www.nyse.com
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