Orphaned Asset Class
For a variety of reasons, including potential speculative use, option investments and trading has been held in low esteem by the bulk of market participants since the Chicago Board of Options Exchange and other regional option exchanges began listing exchange-traded contracts in the 1970's.
Today the option asset class could be considered an orphaned asset class because there is still a pervasive misconception amongst market participants that options "ONLY" increase risk. Although, in contrast, there are number of standardized option strategies which can be used to transfer risk away from an institution's portfolio.
For a variety of reasons, including potential speculative use, option investments and trading has been held in low esteem by the bulk of market participants since the Chicago Board of Options Exchange and other regional option exchanges began listing exchange-traded contracts in the 1970's.
Today the option asset class could be considered an orphaned asset class because there is still a pervasive misconception amongst market participants that options "ONLY" increase risk. Although, in contrast, there are number of standardized option strategies which can be used to transfer risk away from an institution's portfolio.