US Listed Options Primer

An option is a contract to buy or sell an underlying asset or security at a specified price on or before a given date. While institutional investors have long been users of options – and growth continues in this segment – we have seen a growing usage of options strategies by individual investors to leverage their positions with less capital and bolster portfolio returns. In this primer from SIFMA Insights, we provide a fundamental overview of U.S. listed options, including:

  • Mapping Options Strategies
  • Drivers of Market Volumes
  • Evolution of the Market Landscape
  • Classes of Options
  • Fun Facts on Options
  • The History of U.S. Options Exchange and Market Events

Source: Options Clearing Corporation, SIFMA estimates (as of August 2018)

SIFMA Insights Primers

The primer series from SIFMA Insights goes beyond a typical 101-level brief, breaking down important technical and regulatory nuances to foster a fundamental understanding of the marketplace and set the scene to address complex issues arising in today’s markets.

See our primer on equity market structure here.

Credits

SIFMA Insights

Katie Kolchin, CFA
Senior Industry Analyst

Options

Ellen Greene
Managing Director