Traders Engage in Boom-or-Bust Options in Stock Market

Posted on September 29th, 2023 at 10:36 AM
Traders Engage in Boom-or-Bust Options in Stock Market

From the desk of Jim Eccleston at Eccleston Law 

The stock options market is experiencing a surge in activity, as many individual investors are eagerly engaging in trades that expire within hours or days to take advantage of the volatile market swings.

Options contracts with expirations of less than a week now constitute approximately half of all trading activity in the U.S.-listed options market, as reported by the derivatives analytics firm SpotGamma. This marks an increase from approximately 45 percent observed last year and a significant rise from about a third of all activity in 2019.

According to the Wall Street Journal, the overall activity in this market is on track for another record-breaking year, with an average daily trading volume exceeding the 40 million contracts that occurred in 2022.

Shorter-dated options have gained favor due to their cost-effectiveness and the potential for substantial returns if traders' predictions prove accurate. Additionally, many traders have sought opportunities to profit from market declines or hedge their portfolios. The recent period of market volatility has seen a notable uptick in put options trading, reaching its highest level since 2008. Given the current economic uncertainty, traders are shifting their focus towards index options instead of options on individual stocks.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your efforts. You have proven to be a valuable resource.

Jim T.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.