Options Volume On Track For Sixth Consecutive Record Year, Shining Spotlight On Cboe's Options Offerings

The adage ‘luck is where preparation meets opportunity' refers to the ability to capitalize on an unexpected moment or occurrence by being prepared and vigilant. Against the backdrop of heightened market volatility that has seized the investment and economic landscape in recent months, many investors seem to have been positioning themselves to capitalize on said volatility, as evidenced by the increasing activity within the options market.  

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A Growing Options Market

Cboe Global Markets Inc.’s CBOE 2024 Annual Report highlighted that the total volume of U.S. options was a record 12.3 billion in 2024, marking the fifth consecutive record-breaking year for U.S. options activity. 2025 thus far is on track to be the sixth consecutive record-breaking year, as the aggregate total options volume from January to April 2025, based on reported data from The Options Clearing Corporation, was 4.78 billion. In comparison, the aggregate total options volume for the same period in 2024 was 3.91 billion – a 22% increase.

Market Volatility: An Impetus And Opportunity

Higher volatility in the underlying asset generally leads to increased options volume, and the impetus behind recent market activity stems from the incumbent U.S. administration’s trade policy actions. Investors can utilize volatility as an asset to capitalize on the asymmetric market movements that arise during periods of stock market uncertainty. As such, options can be a useful investment tool during such periods.

While many investors understand the basic premise of an option, in that it gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price, they may be unaware of the variety of options available. The commonly known equity option provides exposure to a specific stock, allowing investors to speculate, hedge or generate income on the underlying company's price movement. Equity options are generally American-style, meaning they can be exercised before expiration.

ETF options provide exposure to a broad market segment, sector or asset class and are traded similarly to stock options; they are also American-style exercised. Finally, index options provide exposure to the overall market, allowing investors to hedge or speculate on broad market direction or volatility. Index options are typically European-style exercised, meaning they can only be exercised at expiration and are always cash-settled.

Depending on investment goals, investors can take a specific or broad approach to capitalize on market volatility when using options.

Cboe's Options Ecosystem

As a leading derivatives and securities exchange network and the creator of trading listed options, Cboe^® has a broad and diverse options ecosystem, allowing investors greater choice and access to strategies for navigating and capitalizing on the prevailing market environment.

The Cboe Volatility Index, or the VIX^®, is one of the most well-known indices globally for assessing and observing future market volatility. Cboe's VIX Options can be used by traders and investors to hedge against market volatility, speculate on future volatility or increase portfolio diversification. For broad equity market exposures, Cboe's S&P 500^® Index Options Suite, S&P 500 Equal Weight Index Options, Russell 2000^® Index Options and MSCI Index Options Suite provide access to distinct asset classes and market segments.

Finally, for Cboe-listed equities and ETFs, there is a dedicated listing of all options and offerings available for each security and investment solution.

Learning About And Trading Options With Cboe

Options are among the best financial tools for enhancing and protecting one's portfolio or even speculating about current events. As individuals increase their knowledge of these products and the industry gradually builds capacity to meet increased trade demand, there will likely continue to be growth and demand in the options industry.

For those interested in learning more about options, Cboe's educational platform, The Options Institute, provides novice to professional traders a forum to familiarize themselves with foundational knowledge on options or learn new developments taking place within the investment derivatives landscape. Over the past 40 years, The Options Institute has provided comprehensive courses and tools, equipping investors with the knowledge needed to navigate the complexities of options trading effectively. 

While options can be a great instrument to protect and grow your portfolio, it is important to remember that responsible options trading is based on defining an investment objective and using analysis and informed decision-making to determine the most appropriate trading strategy. Understanding how options work and the associated risks, just like any other financial asset, is paramount – and Cboe wants to be your partner on your options trading journey.   

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This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.