Where Do Options Trade?
Nine options exchanges list puts and calls today and the list is still growing. The table breaks down the options volume for each exchange for trading on June 5, 2012. The International Securities Exchange [ISE] and the Chicago Board Options Exchange [CBOE] are the two largest and, on a typical day, account for nearly two-thirds of the overall volume. Most of the index volume is in the VIX and SPX pits on CBOE. The Philadelphia Stock Exchange [PHLX], the American Stock Exchange [AMEX], NYSE-Arca [NYSE], the NASDAQ [NDAQ], and the Boston Options Exchange [BOX] also list puts and calls. C2 and BATS, both electronic, are the newest exchanges.
In order to help make sense of all the order flow across the market, whave sources on the floor of the exchanges that give us information on buying and selling activity. ISEE data from the electronic International Securities Exchange also gives indications on whether the trades are being initiated as buying or selling, opening or closing.
Source: Options Clearing Corporation (optionsclearing.com)
Category: Trading Education
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About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.
