Is it mainly institutions or hedge funds? who primarily buys options and who primarily sells them. it seems that regular investors do not touch options and are scared of them. so is the majority of volume professionals (hedge funds etc..)
I am not a hedge fund, but I think people who do not use options are leaving money on the table. Sure hedge funds and professional investers use them as they know the leverage of Options. Options if used correctly can and will increase your account balance. Make sure you know what you are doing. Personally, if people are afraid of options, then they have not been properly educated about them and should not sell or buy them. Good luck.
Short answer, everyone trades options that know about them. Sure hedge funds and professional investors trade options, because they know how to properly use them to increase profits. There are many ways to use options to increase your odds of winning. My advise is to learn about what you trade before you trade them.