Trading volume in U.S. equity options hit a new record on Friday, according to data from options analytics provider Trade Alert. More than 49.5 million contracts traded during the session, Trade Alert said. Friday marked the expiration of monthly options contracts, which often results in heavier-than-usual volume. This year, some 416 million U.S. equity options .
NIO, the Chinese electric vehicle company.
Daily volume in single-stock options averaged 17.3 million contracts during 2020, up 68% from the 10.3 million daily average for 2019. Trading picked up late in the year, with December single-stock option volume averaging a record 23.4 million contracts a day, according to data compiled by
Much of the increased activity in 2020 came from individual investors, many of them new to options trading and often buying and selling just a single contract. Each option contract covers 100 shares of stock.
Individual investors gravitated toward call options which give holders the right to buy a stock and thus amount to a bullish bet. And most of those contracts were short-dated at less than a month until maturity.
Provided by Dow Jones
By Gunjan Banerji and Michael Wursthorn Die-hard Tesla Inc. investors are feeling vindicated: The stock is extending its relentless run, and the company is set to join the S&P 500, the most widely tracked stock benchmark in the world. Many are even buying more shares. Tesla has surged 731% this year and reached a record high Friday, padding the wallets of investors who have poured their savings into both the stock and the company s electric cars. The rally has accelerated since S&P Dow Jones Indices said it would add Tesla to the benchmark. The shares are up 70% since Nov. 16 and will enter the S&P 500 on Monday.