Every Trader Needs to Know
Successful options trading is no simple feat. Options traders who thrive regardless of market conditions are those who get an edge everywhere, including staying on top of the latest trends.
Knowing what the options trading landscape looks like—and what you’re up against—is a must.
To give you an edge, we’ve compiled a thorough report of 327 options trading statistics detailing everything you need to stay on top of your game.
Let’s take a closer look.
Sections
History
HOW DID STOCK OPTIONS EVOLVE OVER TIME?
1791
In 1791, the New York Stock Exchange opened, sparking the emergence of a stock options market among smart investors.
1800
In the late 1800s, broker-dealers placed ads in financial journals to attract potential option buyers and sellers.
1929
The Securities and Exchange Commission (SEC) was created in response to the 1929 stock market crash, becoming the regulating authority in 1934.
1968
In 1968, CBOT created an open- outcry exchange for stock options to expand its business beyond the commodity futures market.
1973
The Options Clearing Corporation (OCC) was established in 1973 to ensure timely and reliable fulfillment of options contracts. The Chicago Board Options Exchange (CBOE) opened the same year.
1974
By June 1974, the CBOE reached an average daily volume of over 20,000 contracts.
1975
In 1975, the Philadelphia Stock Exchange and American Stock Exchange opened their own option trading floors, increasing competition and accessibility.
1977
Due to rapid market growth, the SEC conducted a comprehensive review in 1977, pausing options listings and exploring the possibility of a centralized options market.
1980
By 1980, the SEC implemented new regulations for market surveillance, consumer protection, and compliance systems.
2005
In December 2005, Ally Invest’s introduction to the public marked a significant milestone in options history.
2022
The Internet and online brokers have empowered individual investors with free trading tools that were once costly, leading to a record-breaking total options volume of 3.4 billion contracts in 2022.
The Options Playbook
Markets Media
What Were the First Listed Stock Options?
The first listed stock options were introduced by the Chicago Board Options Exchange (CBOE) on April 26, 1973. The CBOE listed call options on 16 underlying stocks, which included major companies like IBM, Xerox, and American Airlines.
Wikipedia
Option Strategist
Who Invented Stock Options?
Russell Sage, a well known American financier born in New York, was the first to create call and put options for trading in the US back in 1872.
Optiontradingpedia
Market Size / Trading Volume
Number of Contracts Traded
| Matched Volume | Market* | Today (as of Q1 2023) | 5 Day |
|---|---|---|---|
| Cboe (C,W,E,Z) | $11,933,601,185 | 56.12% | 48.56% |
| NASDAQ (Q,T,X,H,I,J) | $4,708,092,988 | 22.14% | 25.96% |
| NYSE (A,N) | $2,030,973,661 | 9.55% | 10.95% |
| MIAX (M,P,D) | $1,496,142,202 | 7.04% | 7.54% |
| BOX Options | $1,094,368,666 | 5.15% | 6.98% |
| Total | $21,263,178,702 | 100.00% | 100.00% |
*You can find updated statistics on a daily basis.
CBOE
Total options volume was
3.4 billion contracts in 2022
the third consecutive record-breaking year
CBOE
Average Daily Trading Volume
| Average daily option volume | Annual Volume | ||
|---|---|---|---|
| 40,388,770 | 2022 | 2021 | 2020 |
| Options total contracts ADV (in millions) | 13.6 | 12.1 | 10.1 |
| U.S. Equities total touched shares ADV (in billions) | 1.7 | 1.7 | 1.8 |
| Canadian Equities total touched shares ADV (in millions) (1) | 91.8 | 49.4 | 43.1 |
| Futures ADV (in thousands) | 218.2 | 230.4 | 200.6 |
| European Equities matched and touched ADNV (€ in billions) | 10.8 | 7.7 | 6.9 |
| European trades cleaned (in millions) (2) | 1,493.3 | 1,244.2 | 545.5 |
| Global FX ADNV ($ in billions) | 40.9 | 33.9 | 34.7 |
The following chart lists average daily transaction volume in number of shares/contracts, notional value transacted or trades cleared for Options (Cboe Options, C2 Options, BZX Options, and EDGX Options); Futures (CFE); U.S. Equities (BZX Equities, BYX Equities, EDGA Equities, and EDGX Equities); Canadian Equities (MATCHNow); European Equities (Cboe Europe Equities); European Clearing (EuroCCP); and Global FX (Cboe FX and Cboe SEF) for the periods indicated
Market Chameleon
CBOE
CBOE
CBOE
Through the Years: The Growth of Options Trading
Bloomberg
U.S. Options Trading Over the Past Few Years
Options trading volumes topped 10 billion in 2022, after soaring 32.2% to a record 9.87 billion contracts in 2021. That was double 2019’s total, which was also a record.
For the first quarter of 2023, 1.8 billion contracts have traded, putting options on course for another strong year.
Refinitiv
What is the Most Actively Traded Option Contract?
SPDR S&P 500 ETF (SPY)
is usually the most actively traded symbol in the entire market.
TradeStation
Most Active options
| Company | Avg Options Volume | Business |
|---|---|---|
| SPDR S&P 500 ETF (SPY) | 9 million | Tracks the S&P 500 |
| Tesla (TSLA) | 3 million | Electric cars |
| Invesco QQQ Trust (QQQ) | 3 million | Tracks the Nasdaq-100 |
| Apple (APPL) | 1.1 million | iPhones, computers |
| Amazon.com (AMZN) | 930,000 | E-commerce |
| iShares Russell 2000 (IWM) | 811,000 | Tracks the Russell 2000 |
| AMC Entertainment (AMC) | 726,000 | Movie theaters |
| Alphabet (GOOGL) | 609,000 | Internet |
| Advanced Micro Devices (AMD) | 435,000 | Semiconductors |
| Bed Bath & Beyond (BBBY) | 407,000 | Retail |
TradeStation
Who is the Richest Option Trader in the World?
The most famous billionaire traders are George Soros, Carl Icahn, Ray Dalio, David Tepper, and James Simons. The Richest and most famous active traders in the world in 2023 are: Carl Icahn (17.6 billion dollars) George Soros (6.7 billion dollars).
Forex
TradeStation
Average daily turnover value of exchange traded options in the United States from January 2021 to January 2023, by exchange
Between January 2021 and January 2023, CBOE held the largest market share at almost 40% of U.S. daily exchange-traded options, followed by Nasdaq at over 32%, BOX at around 15.5%, and NYSE at 7.93%, with a total average daily turnover of approximately 28.3B U.S. dollars in January 2023.
Daily Options Turnover Value of Exchange Traded Options in the US
Statista
Regulation
Who Regulates Options in America?
In the U.S., options trading is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), where the SEC oversees the securities industry with the primary aim of protecting investors, while FINRA regulates brokerage firms and brokers.
Statista
Who Controls Options Trading?
The issuer has the corresponding obligation to fulfill the transaction (to sell or buy) if the holder “exercises” the option. An option that conveys to the holder the right to buy at a specified price is referred to as a call, while one that conveys the right to sell at a specified price is known as a put.
The Trading Analyst
Are Options Regulated by the SEC?
All option contracts involving stocks or indexes are overseen by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA); while option contracts involving forex, commodities, or futures are regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).
Investopedia
Do You Need a License to Trade Options?
You don’t need a license to be an options trader. The Financial Industry Regulatory Authority (FINRA) offers the Registered Options Principal Exam. Passing this test can give you more credibility as an options trader, but it’s not a requirement.
Indeed
Who Regulates Options in Europe?
Cboe Europe operates two regulated venues – Cboe UK (Cboe Europe Limited) and Cboe NL (Cboe Europe B.V.). Cboe Europe oversees and regulates all trading conducted on its markets and takes its responsibilities in this — and every other regard — very seriously.
Options Trader Success and Profitability
How Much Do Options Traders Make a Year?
Options traders in America make an average salary of $110,139 per year or $53 per hour. The top 10% makes over $185,000 per year, while the bottom 10% earns under $65,000 per year.
Average optionS trader salary
$110,139 yearly
$52.95 hourly
Zippia
What is the Success Ratio in Option Trading?
Options trading, despite its advantages, involves significant risk and speculation. Success in this field is not attainable for everyone. Similar to other businesses, it demands specific skills, personality traits, and a determined attitude.
Only 10% of traders make money, and the remaining 90% end up in a loss.
CBOE
There is a 25% chance of losing your investment and a 75% chance of profit.
Investopedia
What Percentage of Options Trades Are from Retail Traders?
The percentage of total trading volume coming from retail investors was about 23% from January 25 to February 1 in 2023.
Forbes
How Much do Traders Lose?
90% of traders fail to make money when trading the stock market. This statistic deems that over time 80% lose, 10% break even and just10% make money consistently.
Wealth Within
What Percentage of Options Contracts Are Closed Out, Exercised, or Expire Worthless?
According to the Chicago Board Options Exchange (CBOE) here are the statistics:
55% – 60% of option contracts are closed out prior to expiration
10% of option contracts are exercised
30% – 35% of option contracts expire worthless
The Blue Collar Investor
Investopedia
Options Trader Demographics
OPTIONS TRADERS BY GENDER
Ratio: Men vs. Women
9.2% of options traders are women and 90.8% of options traders are men.
Zippia
Gender Pay Gap For Options TraderS
Women earn 90¢ for every $1 earned by men.
Male income $109,139
Male income $109,139
Zippia
Options Trader Gender By Year
| Year | Male | Female |
|---|---|---|
| 2010 | 88.51% | 11.49% |
| 2011 | 87.64% | 12.36% |
| 2012 | 88.43% | 11.57% |
| 2013 | 88.30% | 11.70% |
| 2014 | 87.99% | 12.01% |
| 2015 | 88.62% | 11.38% |
| 2016 | 88.98% | 11.02% |
| 2017 | 87.72% | 11.28% |
| 2018 | 89.26% | 10.74% |
| 2019 | 90.56% | 9.44% |
| 2020 | 90.47% | 9.53% |
| 2021 | 90.80% | 9.20% |
Zippia
Options Traders Statistic by Race
The most common ethnicity among options traders is White, which makes up 66.7% of all options traders. Comparatively, there are 12.2% of the Asian ethnicity and 11.3% of the Hispanic or Latino ethnicity.
Zippia
Options Traders Statistic by Race
“Unknown” options traders have the highest average salary compared to other ethni- cities. Black or African American options traders have the lowest average salary at $93,952.
Zippia
Options Traders By Race
| Year | White | Black or African American | Asian | Hispanic or Latino |
|---|---|---|---|---|
| 2010 | 74.21% | 6.09% | 8.15% | 10.03% |
| 2011 | 74.32% | 5.72% | 8.99% | 9.53% |
| 2012 | 72.69% | 5.77% | 9.02% | 11.12% |
| 2013 | 73.15% | 5.04% | 9.64% | 10.10% |
| 2014 | 73.60% | 5.49% | 9.34% | 10.06% |
| 2015 | 73.23% | 5.62% | 9.62% | 9.68% |
| 2016 | 71.71% | 5.30% | 9.94% | 11.25% |
| 2017 | 72.00% | 5.17% | 9.72% | 11.02% |
| 2018 | 70.16% | 5.18% | 11.17% | 11.16% |
| 2019 | 72.04% | 5.53% | 10.50% | 10.06% |
| 2020 | 69.05% | 5.49% | 10.33% | 11.60% |
| 2021 | 66.73% | 5.44% | 12.21% | 11.28% |
Zippia
Options Traders by Age and Race
| Race | Male Age | Female Age |
|---|---|---|
| Unknown | 40 | 48.5 |
| White | 43 | 47 |
| Black or African American | 40.5 | 47 |
| Asian | 42 | 37.5 |
| Hispanic or Latino | 37 | 42 |
Zippia
This chart breaks down the ages of options trader employees. Interestingly enough, the average age of options traders is 40+ years old, which represents 58% of the population.
Options Trader AGE
| Option Traders Years | Percentages |
|---|---|
| 40+ years | 58% |
| 30 – 40 years | 28% |
| 20 – 30 years | 14% |
Zippia
How Many Options Traders have Degrees?
The most common degree for options traders is a bachelor’s degree, with 82% of options traders holding a bachelor’s degree. A close second is a master’s degree with 12%, and rounding it off is an associate’s degree with 3%.
Option Traders by education
| Option Trader Degree | Percentages |
|---|---|
| Bachelors | 82% |
| Masters | 12% |
| Associate | 3% |
| Doctorate | 1% |
| Other Degrees | 2% |
Zippia
Options Trader Wage Gap By Education
Options traders with a Masters degree earn more than those without, at $141,254 annually. With a Doctorate degree, options traders earn a median annual income of $130,472 compared to $109,139 for options traders with a Bachelor’s degree.
Zippia
Options Trader Jobs By Employer Size
| Company Size | Percentages |
|---|---|
| < 50 employees | 11% |
| 50 – 100 employees | 16% |
| 100 – 500 employees | 23% |
| 500 – 1,000 employees | 11% |
| 1,000 – 10,000 employees | 23% |
| > 10,000 employees | 16% |
Zippia
Employees with the options trader job title have their preferences when it comes to working for a company. For instance, most options traders prefer to work at private companies over public companies.
Zippia
Top Industries Hiring Options Traders
Just based on the number of employees within each industry, we were able to determine the most common industries that employ options traders. Those industries include finance, professional and technology.
| Industry | Percentages |
|---|---|
| Finance | 40% |
| Professional | 9% |
| Fortune 500 | 8% |
| Technology | 7% |
| Manufacturing | 6% |
| Transportation | 4% |
| Hospitality | 4% |
| Media | 3% |
| Internet | 2% |
| Government | 2% |
| Utilities | 2% |
| Real Estate | 2% |
| Pharmaceutical | 1% |
| Automotive | 1% |
| Construction | 1% |
| Health Care | 1% |
| Retail | 1% |
| Telecommunication | 1% |
| Energy | 1% |
| Non Profits | 1% |
| Insurance | 1% |
| Education | 1% |
| Agriculture | 1% |
| Start-up | 1% |
Zippia
Options Trader Unemployment Rate By Year
| Year | Percentages |
|---|---|
| 2010 | 7.5% |
| 2011 | 6.42% |
| 2012 | 6.14% |
| 2013 | 4.28% |
| 2014 | 4.90% |
| 2015 | 3.10% |
| 2016 | 4.15% |
| 2017 | 3.43% |
| 2018 | 2.39% |
| 2019 | 3.02% |
| 2020 | 4.76% |
| 2021 | 3.65% |
Zippia
Foreign Languages Spoken By Options Traders
| Foreign Language | Percentages |
|---|---|
| Spanish | 24.5% |
| Chinese | 15.1% |
| French | 9.4% |
| German | 7.5% |
| Japanese | 7.5% |
| Other | 36.0% |
Zippia
Further reading
See our unique insight in the following guides:
- Options Trading Alerts
- Chart Patterns Cheat Sheet
- Beginner Trading Strategies
- Advanced Options Strategies
- How to Trade Options
- Types of Options Orders
- Spinning Top Candle
- Straddle Option
- Triple Top Pattern
