Seven of the ten biggest-ever options volume days have been in 2024, with the other three in 2023, according to this report in Traders Magazine.
It goes on to say: "...numbers that would be considered spikes ten or even five years ago are more like a current-day new normal."
I wouldn't have it any other way.
The growing popularity of options trading makes sense to me. No other product offers so much dynamic flexibility for traders to craft unique ways to express market opinions.
No other product gives us the ability to define our risks absolutely, while positioning ourselves with leverage to participate in theoretically unlimited gains.
Sure, there are options strategies that are dangerous when in the hands of inexperienced or reckless traders. But even these strategies come with a high win rate that can be a powerful portfolio diversifier when used responsibly.
While I predominately execute strategies that have defined risk, there is a time and a place for trades that go little further out on the risk curve and I do those trades selectively and often, when conditions warrant.
As the trading world continues to adopt options trading, I couldn't be more excited about our future. More volume means more eyeballs means more great ideas means more opportunity.
You've often heard me repeat that "less is more." And I truly believe that -- in most things.
But when it comes to options volume - more is MORE.
Bring it on!
And for those of you new around here, welcome! We've been waiting for you.
Sean McLaughlin | Chief Options Strategist, All Star Charts
