In December 1999, month-end equity volume was the highest ever, with 50,908,243 contracts traded. Since an equity option is the right but not the obligation to either buy or sell 100 shares of stock at a predetermined price, December's volume record represents over 5 billion shares of stock. Year-end cleared contract volume for equity stood at 444,765,224, up from 329,641,875 contracts a year ago. On December 17, equity options trading reached a new high with 3,644,067 equity contracts traded. That same day, equity open interest stood at its highest point ever with 56,741,392 contracts open.
Open interest is one indication of longer-term investing in equity options.
Average daily equity volume for the month of December was 2,314,011. Over the past few years, equity options investing has grown from a technique perceived to be just for professional investors to a versatile tool that encompasses a wide range of individual investor needs. OIC, which includes the American Stock Exchange, Chicago Board Options Exchange, Pacific Exchange, Philadelphia Stock Exchange and The Options Clearing Corporation, has an extensive educational program. A print and broadcast advertising campaign has resulted in more than 250,000 inquiries seeking literature and videotapes.