Options broker

Options broker

Options brokers specialize in offering options trading, research, education and other tools to individual investors. In addition to common options trades like covered calls, option spreads, and straddles, many options brokerages offer trading in products related to options, including stocks, ETFs, mutual funds, and bonds ((also known as fixed income)).

A broker is required to facilitate both sides of the option transaction, whether the investor is writing the option or buying the option. [1]

Growth in options trading

Options trading in organized exchanges was first introduced in 1973 by the Chicago Board Options Exchange (CBOE)[2] and has since grown exponentially in volume, first among institutional investors and, more recently, driven by individual investors.[3]

This considerable growth has in turn promoted growth in option brokerages, who provide specialized trading and research tools geared at options traders’ needs as well as options education.[4]

Notes

  1. ^ Futures Trading, Options Trading Brokerage Services Accessed July 31, 2011.
  2. ^ History of CBOE
  3. ^ “Brokerages Demystify Options Trading as a Way to Ride Markets” by Joe Bel Bruno, Associated Press, May 10, 2008.
  4. ^ “Better Know Your Option Options” by Matt Krantz, USA Today, November 16, 2007

See also


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