The FinancialMoomoo, a prominent trading platform, partnered with Cboe Global Markets to release the 2024 Options Trader Survey, which reveals a surge in options trading interest among retail investors.
Growing Popularity of Options Trading
The survey shows a significant rise in options trading adoption among retail investors, with many embracing basic options strategies and aiming to learn more advanced techniques. Findings highlight that retail traders are actively seeking ways to enhance their skills and knowledge in this area.
Nearly Half of Retail Investors Trade Options Regularly
Conducted in September 2024 with over 1,000 participants, the survey found that 67% of respondents have been trading options for under three years. Nearly half of these investors engage in options trading on a daily or weekly basis, with 43% trading Zero Days-to-Expiration (0DTE) options, a rapidly growing trend in the options market.
Income generation (67%) and risk management were cited as primary reasons for retail interest in options. Factors such as lower trading fees, greater access to financial information, and advanced analytical tools also drive the popularity of options trading. The survey underscores the importance of educational resources, with many traders seeking better tools to refine their strategies and understanding.
Cboe contributed data to enrich the survey insights, highlighting the growth potential in options trading as retail investors increase their engagement. Moomoo is committed to supporting this community by providing free educational tools, resources, and interactive learning events.
Neil McDonald, CEO of Moomoo US, commented, “Options trading interest has reached an all-time high. As a veteran in derivatives trading, I’m excited to see retail investors accessing rich data and tools. At Moomoo, we’re dedicated to offering top educational resources to support the retail investment community.”
Cboe Expands with VIX Futures Options
This month, Cboe introduced options on the Cboe Volatility Index (VIX) futures. The options are based on front-month VIX futures, enabling investors to manage market volatility. With futures as the underlying asset, these options will be regulated by the CFTC, offering access to a broader range of market participants who may be restricted from securities-based options.
The options on VIX futures, which are European-style and physically settle into front-month VIX futures, are expected to complement existing VIX Index options. This provides customers with more expiration date choices and additional tools for tailored hedging strategies. Options on VIX futures join a lineup of Cboe’s volatility products, including Cboe Volatility Index (VIX) futures and forthcoming products like Cboe S&P 500 Variance (VA) futures and Cboe S&P 500 Dispersion Index (DSPX) futures.