US buy-side traders expect their use of options to grow in 2009 as trading conditions return to normal, according to a new study from research and consulting firm TABB Group.
Of the 54 traders at asset management firms, hedge funds market makers and prop trading firms TABB interviewed for the study, ‘US Options Trading in 2009: Resilience in the Face of Crisis’, 63% expected their options volumes to increase in 2009. A further 9% thought volumes would remain flat and 19% said volumes would decline. The remaining 9% provided no answer.
According to Andy Nybo, senior analyst at TABB and author of the report, many options strategies were either not possible or economically viable during the highly volatile trading conditions of Q3-Q4 last year. But traders will be ready to resume and increase options use as trading returns to normal.
“Options strategies allow buy-side traders to hedge and increase their returns through prudent strategies,” he told theTRADEnews.com.
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