Option Volume Fragmentation

Discussion in 'Options' started by ajacobson, Jan 30, 2018.

  1. ajacobson

    ajacobson

    This is from a Trade Alert presentation at a SIFMA conference in 2017.

    23% is SPY or SPX - over 70% of the volume is clustered in the top 25 names.

    listedoptions_online.jpg
     
    KeLo and happyscalpie like this.
  2. That's basically just a graphical representation of Barchart's list of Most Active ETF, and Index, and Stock options.
    https://www.barchart.com/options/most-active/etfs o_O

    SPY, S&P 500 ETF, is always the monster in options volume, by-far.
    SPX index is a fraction of its volume. and individual Stocks are a further tiny fraction.
     
  3. so?
     
  4. newwurldmn

    newwurldmn

    remember FREE THE SPX!?
     
  5. tommcginnis

    tommcginnis

    Not to be a stinker, but somebody didn't proof.

    As a pie chart, over one-quarter of the area is SPY -- maybe 26%-27% -- not the 16% that the graphic claims.
    If you give it a tilt, you can imagine the SPX to be about half of a quarter -- or 12.5% or so -- not the 7% claimed.
    And of course, when you add the two areas together, you have something approaching 40% -- or about 26.5% + 12.5% = 39%

    As these things go, graphs usually come from data, and labels from a human input -- but both of these appear data driven. Either way, somet'ing screwed here, mon.
     
  6. tommcginnis

    tommcginnis

    No, "Soes!"
    Okay?
    "Soes!!"

    Say it with me now. :thumbsup::thumbsup:
     
  7. ajacobson

    ajacobson

    remember FREE THE SPX!?


    I have the buttons and hats. Then again I have an entire sleeve of the DJX opening day green hats.