October Options Volume & Market Share OCC reports highest number of contracts cleared in 45 year history OCC, the world's largest equity derivatives clearing organization, announced a record 567,833,544 total contracts cleared in October, the highest monthly total since OCC's founding in 1973. October volume was up 48.9 percent compared to October 2017 volume of 381,467,272. OCC's year-to-date average daily cleared contract volume is up 21.3 percent, with 20,698,059 contracts compared to 17,070,435 contracts in 2017. Overall exchange-listed options volume reached 555,628,831 contracts in October, up 49.7 percent from October 2017. Equity options volume reached a total of 492,277,954 contracts, a 50.7 percent increase from October 2017. This includes cleared ETF options volume of 230,928,177 contracts last month, a 83.4 percent increase compared to October 2017 volume of 125,932,951 contracts. Index options volume was up 42.8 percent with 63,350,877 contracts in October, with
year-to-date average daily volume up 12.2 percent from October 2017.
Market share details as follows (Source: OCC)
| Exchange | Equity | Index/Other | Exchange Total | | Â | Volume | Market Share | Volume | Market Share | Volume | Market Share | | AMEX | 43,058,749 | 8.75% | 146 | 0.00% | 43,058,895 | 7.75% | | ARCA | 50,497,195 | 10.26% | 221 | 0.00% | 50,497,416 | 9.09% | | BATS | 45,916,963 | 9.33% | 59,755 | 0.09% | 45,976,718 | 8.27% | | BOX | 10,100,691 | 2.05% | 0 | 0.00% | 10,100,691 | 1.82% | | C2 | 16,083,228 | 3.27% | 191,066 | 0.30% | 16,274,294 | 2.93% | | CBOE | 76,780,755 | 15.60% | 62,534,003 | 98.71% | 139,314,758 | 25.07% | | EDGX | 13,579,346 | 2.76% | 0 | 0.00% | 13,579,346 | 2.44% | | GEM | 21,063,431 | 4.28% | 20,623 | 0.03% | 21,084,054 | 3.79% | | ISE | 47,004,237 | 9.55% | 156,812 | 0.25% | 47,161,049 | 8.49% | | MCRY | 583,453 | 0.12% | 0 | 0.00% | 583,453 | 0.11% | | MIAX | 20,695,139 | 4.20% | 0 | 0.00% | 20,695,139 | 3.72% | | MPRL | 26,638,243 | 5.41% | 0 | 0.00% | 26,638,243 | 4.79% | | NOBO | 1,440,116 | 0.29% | 0 | 0.00% | 1,440,116 | 0.26% | | NSDQ | 47,090,626 | 9.57% | 0 | 0.00% | 47,090,626 | 8.48% | | PHLX | 71,745,782 | 14.57% | 388,251 | 0.61% | 72,134,033 | 12.98% | | OCC Totals | 492,277,954 | 100.00% | 63,350,877 | 100.00% | 555,628,831 | 100.00% |
Featured Interview Options Insider Radio Interviews: What Options Traders Can Expect from E*Trade Posted May 7th, 2018 In this episode, Mark is live at the 2018 Options Industry Conference where he caught up with Chris Larkin, Senior Vice President of Trading Product at E*Trade. They discuss: - The acquisition and integration of Options House and E*Trade platforms
- Rebuilding the platform from the ground up
- Lowering the barrier to entry for new options traders
- What percentage of trades happen on mobile devices?
- Increasing the community offering
- Addressing the liquidity issue
- What about after-hours options trading?
- And more...
Upcoming Economic Reports A preview of what may move the market this week
| TIME (ET) | REPORT | PERIOD | FORECAST | PREVIOUS | | MONDAY, NOV. 5 | | 9:45 AM | Markit services PMI final | Oct. | -- | 54.7 | | 10:00 AM | ISM nonmanufacturing index | Oct. | 58.60% | 61.60% | | TUESDAY, NOV. 6 | | Â | Election Day | Â | Â | Â | | 10:00 AM | Job openings | Sept. | -- | 7.1 ln | | WEDNESDAY, NOV. 7 | | 3:00 PM | Consumer credit | Sept. | -- | $20 bln | | THURSDAY, NOV. 8 | | 8:30 AM | Weekly jobless claims | 3-Nov | 213,000 | 214,000 | | 2:00 PM | FOMC announcement | Â | 2-2.25% | 2-2.25% | | FRIDAY, NOV. 9 | | 8:30 AM | Producer price index | Oct. | 0.20% | 0.20% | | 10:00 AM | Consumer sentiment | Nov. | 99.1 | 98.6 | | 10:00 AM | Wholesale inventories | Sept. | -- | 1.00% |
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Options Insider Radio Network Episodes you may have missed from Options Insider Radio last week
Option Block 756: The End of the Beginning or The Beginning of the End Posted November 2nd, 2018 Trading Block: Earnings Highlights for the Week - Tuesday - GE, Sony, BP, FB, ebay, Pfizer, Coca-Cola
- Wednesday - GM
- Thursday - Apple, Starbucks, Weight Watchers, Spotify, Cigna, Dow/DuPont
- Friday - ExxonMobil, Cboe, Alibaba, Chevron, Berkshire Hathaway
- Equities: Growth in US corporate earnings expectations remains strong.
Odd Block: More puts in Tesla Motors Inc. (TSLA) and "Line in the sand" puts in Yelp Inc (YELP) Mail Block: Options question of the week Volatility is all over the place these days. Some say it's too cheap, others say it's too expensive. Either way they want to trade it. What's your weapon of choice when trading the wacky world of volatility? - VIX options/futures
- VXX options/ shares
- TVIX shares
- SPX / $SPY options
Listener questions and comments: - Question from Mark Davis: Hello, I have written in previously and got some great feedback on my question, so hoping you can help me out again.I am still playing (paper trading) with options while in my real account I purchase shares outright. After having quite a few good years, with the increase in volatility lately I have taken some pretty rough hits, so far for the YTD I lost about 16% of my portfolio. I should also mention I currently only deal with Index funds (S&P, International, & Small cap). I go in and out of these stocks based on various parameters that may have me holding a certain stock for less than a month to a little more than a month. Is your stock replacement strategy a good use for this or maybe not since time horizon is generally not long.
Example. Tomorrow I may buy 100 Shares of SPY @ 25 each, likely selling the shares in about 20 days. I am trying to figure a way to get the same (or close to same) movement as if I owned the shares outright while limiting the downside of at least setting a li e in the sand. I am having trouble wrapping my head around the right strategy or if what I want to do is even possible. So in the example above my portfolio had I bought outright and the stock is at 30 in 20 days I'm at $500 but what do I do to get close to this using Options. On the flip side if SPY was at 20, I am thinking there is a way that I would can protect myself from losing some of that $500. Another thing I'm not sure of when doing this should I only be buying enough Contracts that I could afford it were I to exercise the options, i.e. if I have $200 in my account and the underlying is $1/share would I only want to buy 2 calls even though I would ideally have enough money to buy more contracts? Thanks for your feedback. Around the Block/This Week in the Markets - Nov 2 - Unemployment, International Trade, Factory Orders
 This Week in Futures Options 125: Talking Equities, Crude and More with TDAmeritrade Today's CME hot seat guest is JB Mackenzie, Managing Director, Futures & Forex at TD Ameritrade Topics this week include: Equities Crude Metals/Gold Rates Futures Options Feedback: Listeners take the reins Question from Taylor N. - Do most FCMs... Posted November 2nd, 2018 Today's CME hot seat guest is JB Mackenzie, Managing Director, Futures & Forex at TD Ameritrade Topics this week include: - Equities
- Crude
- Metals/Gold
- Rates
Futures Options Feedback: Listeners take the reins - Question from Taylor N. - Do most FCMs offer the ability to go delta neutral easily on their platform? Or do you still have to go through the hassle and risk of legging?
- Question from Mystrio - Are we done? Is this beginning of the end of the bull?
 Options Playbook Radio 232: Picking a NVDA Backspread Posted November 1st, 2018 Nvidia is announcing earnings soon. Can we expect a dead cat bounce on the stock? You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: - What has NVDA been up to lately?
- NVDA has an earnings announcement on 11/15
- Selecting expiration dates
- Where is implied volatility for the expirations?
- What are our expectations for IV?
- Putting on a backspread with calls
- Setting up the trade
- What is the risk?
- What do we want to happen?
- Which to choose? Why?
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.  Advisors Option 72: Exploring Market Volatility plus Your Questions Posted November 1st, 2018 The Buzz: The Return of Volatility Redux Volatility is back again! - What are your thoughts on the current volatility landscape? What should advisors be doing right now to manage this volatility and their client's expectations? What are you hearing from advisors right now?
- Financial Services Committee Unanimously Passes Hultgren's Options Markets Stability Act
- Will Bonds Protect in the Next Bear Market?
Office Hours: What do you want to know? - Question from Andrews S. CFA - I know that in most trading accounts brokers will allow you to write puts with somewhere between 20%-50% margin kept in reserve. But am I correct in assuming that you cannot do this in IRA accounts - only cash secured puts? That dramatically increases the capital cost associated with this strategy. Since most of my clients are in IRAs I don't think I will be pursuing this for them. Do you think this limits the utility for RIAs since I'd imagine a large number of advisors fall into this category?
- Question from Mr. Bodine - What are the three main options strategies used by advisors?
- Question from TronS6 - What's your suggested minimum account size before I consider putting a client into options?
- Question from Matt Simpson - Are there any of the larger advisory firms that you feel have better understanding of options than others? I want more than someone who can just do 60/30/10. Maybe a nice covered call or collar plus a few speculative plays like verticals?
- Question from Misf3t - After all your data and research are you still hesitant to recommend any particular strategy for trading options during earnings season?
- Question from Douglas Tilley - Hello!--Regarding long stock substitution: 1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost. 2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (vs. buying calls for a desired total delta). What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education--D Tilley.
OCC Rebranded:Â OCC recently rebranded as part of growing role as a SIFMU, influential thought leader and steward of the US exchange-listed options industry. Through OIC, we are leading educator of exchange-listed options to the investing public. Â Options Insider Radio Special Events: Trading Asia Symposium FIA Discussion Posted October 31st, 2018 Phillip Capital's Trading Asia Symposium is the only annual event of its kind in the US that focuses on Trading Asia for the financial derivatives community. Up next, Bill Herder, the head of FIA for the Asia-Pacific region, addresses the crowd. Â Option Block 755: Talking Earnings, Volatility, IBM and More Posted October 30th, 2018 Trading Block: And we're back up! Earnings highlights for the week: - Tuesday - GE, Sony, BP, FB, eBay
- Wednesday - GM
- Thursday - Apple
- Friday - ExxonMobil, Cboe, Alibaba, Chevron
- IBM buys Red Hat for $34B
Odd Block: Put summary in Tesla Motors Inc. (TSLA), calls going up in Proctor & Gamble Co (PG), call love in Exelixis (EXEL) and put love in Ford Motor Company (F). Strategy Block: Uncle Mike discusses butterflies for buying the dip Around the Block/This Week in the Markets - Oct 29: Personal Income
- Oct 30: Consumer Confidence
- Nov 1: Jobless Claims, Construction Spending
- Nov 2: Unemployment, International Trade, Factory Orders
 Options Insider Radio Special Events: Trading Asia Symposium Panel One Posted October 29th, 2018 Phillip Capital's Trading Asia Symposium is the only annual event of its kind in the US that focuses on Trading Asia for the financial derivatives community. Up next, learn from the Asian Exchanges about the latest developments and trading opportunities.  Options Insider Radio Special Events: Trading Asia Symposium Introduction Posted October 29th, 2018 Phillip Capital's Trading Asia Symposium is the only annual event of its kind in the US that focuses on Trading Asia for the financial derivatives community. Up first, the opening speech by Joseph Banyai and Lynette Lim  Volatility Views 327: VIX, Seriously, WTH? Posted October 29th, 2018 Volatility Review: A look back at the week from a volatility perspective. Volatility Voicemail: Options question of the week Earnings are back with big tech names on the docket. Which of the following will be lighting up your #Options trading this week? Bonus points for your preferred strategies - e.g. call vertical, straddle, etc. - 28% - Microsoft $MSFT
- 34% - Amazon $AMZN
- 10% - Alphabet $GOOGL
- 28% - Twitter $TWTR
Listener questions and comments: - Question from Cube Finance - Do we smell the distinct odor of feedback loops about to take off? #risk #volatility
- Question from Darren Hom - VXX and the index it's based on provided a statistically significant exposure to shorting straddles. This was not the case for VIX, presumably because of volatility drag. Is it that bad that XIV is gone?
- Question from PRGR0 - SPY or SPX better for straight vol plays like straddles?
Crystal Ball: Your prognostication headquarters Last week: - Mark L. - 17.75
- Mark S. - 16.25
This week: - Mark L. - 18.15
- Mark S. - 17.25
- Guest - 18.50
Where to Find Options Insider Radio? Do you know all the ways you can access Options Insider Radio              Â
Options Insider Radio Network Live Recordings Do you want to be a part of the fun? This is when you can access the LIVE shows this week: Monday: Option Block LIVE at 12pm Central
Thursday:
Option Block LIVE at 12pm Central
This Week in Futures Options LIVE at 1:30 Central
Friday:
Volatility Views LIVE at 12pm Central
As always, you can join in the fun at http://mixlr.com/options-insider/
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