US Stock Options Smash Record, Surpassing 10 Billion Contracts in 2022

The boom in stock market options shows no sign of slowing, as the number of traded US contracts surpassed the 10-billion mark in 2022 for the first time ever, playing a role in the biggest equity rout since 2008.

For the third straight year, contracts in US single-stock and index options set a record, more than doubling from the level three years ago.

As the Nasdaq Composite Index fell 33% and the S&P 500 declined 20% in 2022, trading in put options soared by more than 30% compared to 2021, while trading in bullish call options declined 12%.

Meanwhile, short-dated options are getting increasingly popular among professional traders during the year, especially around crucial data releases or central bank press conferences. For instance, S&P 500 options expiring within one day comprised more than 40% of total volume over the third quarter, almost doubling from six months before, Goldman Sachs estimated.