Will The Futures Market Kill The Options Golden Goose?

Discussion in 'Wall St. News' started by archon, Aug 8, 2008.

  1. archon


    Will The Futures Market Kill The Options Golden Goose?
    Posted at www.theoptionsinsider.com
    by Mark S. Longo

    The July Explosion
    The options market has been growing at an amazing clip for the past seven years. While other financial markets have stagnated, new entrants continue to flood into the options pits and bins. This unending tide of retail and institutional customers has allowed the options industry to dramatically outpace other financial sectors in recent years.

    The explosion in options volume has outlasted even the rosiest of predictions. We've certainly come a long way from the dark days of 2001 when antiquated technology, plunging seat prices, unchecked competition and a regulatory morass threatened the future of the industry. In the prolonged downturn after 9/11, few prognosticators would have dared to suggest a seven-year options bull market was on the horizon. The very idea seemed ludicrous

    Setting The Bar Too High?
    Yet that is exactly what we have witnessed over the past seven years. This bull market has continued for so long that it has reshaped the definition of success in the options world. Many observers have now come to expect dramatic volume increases every month as a matter of course.

    However, even in this environment of skewed expectations, the July volume numbers are enough to give jaded options veterans a moment of pause....

    full article available here:
  2. Short answer - yes.

    The futures market is heading down the toilet real quick. Just take a look at the CME's stock these days.

    If options traders aren't careful, their market will follow suit.
  3. It maybe down from its highs but dont forget it is still trading around 10 times its 2003 IPO price so hardly in the toilet in my opinion
  4. What does the title: "Will The Futures Market Kill The Options Golden Goose?"

    have to do with explosive growth?

    If it no longer grows rapidly, they still have a lot of options trading.

    This article is inane. It makes it sound like rapid growth will halt all options trading.
  5. There can't be that much volume if their numbers are down for the second month in a row!