Cboe Global Markets data speaks to the evolution of U.S. options and derivatives volumes and behavioral patterns by traders in recent years, Andy Bevers, the firm's senior director and head of U.S. derivatives account coverage, told the 2022 Fintwit Conference presented by Benzinga and Lupton Capital on Friday.
CBOE Data Reflects Pandemic Trading Trends: "I think as you'd expect, with the explosion in retail adoption, that the single name equity option volume has really taken off right at the time of the pandemic," Bevers highlighted in his presentation.
Over the trailing year, Bevers shared with attendees Cboe data revealing single-name equities have seen a 51% spike in average daily options volume. Index- and ETF-related options saw 10% and 6% increases, respectively, in volume over the trailing year. In other words, traders and investors are picking their spots with greater specificity than ever.
Short Options Trades Rise In Popularity: Cboe data Bevers shared with attendees particularly illustrated the explosion in popularity of zero DTX (days to expiration) and shorter-window options trades seen in the U.S. markets.
“In 2022, you look at where the typical DTX (days to expiration) is, it’s consolidated toward the short duration trades,” Bevers said.
“From 2016 to 2022, short duration trades increased every single year.”
Cboe data presented by Bevers showed zero DTX options made up some 5% of all options volume by maturity in 2016. Now in 2022, 12% of volumes were zero DTX trades. During his presentation, Bevers attributed some of this spike in short duration options trades to the popularity of Robinhood Markets Inc (NASDAQ:HOOD) and the spike in retail trader participation in U.S. markets that followed.
Zooming out, data presented by Bevers revealed 0-1 DTX trades were 10% of options volume by maturity in 2016, spiking to 22% in 2022. 0-5 DTX trades also saw a marked spike in interest from 23% to 42% from 2016 to 2022.
