However, the jumbo-size contracts could come with wider bid/ask spreads tan similar normal-size contracts.
Meanwhile, exchanges are preparing to enact “mini” options on five securities that are over $100, including SPY, Google (NasdaqGS: GOOG) and Apple (NasdaqGS: AAPL), for investors to speculate or hedge with 10 share contracts.
“In 2013 there’s significantly more demand for options than in the late 1990s,” Michael Bickford, a principal at TYJS Group LLC, said in the article. “There’s more of an audience for options in general and there’s more institutional demand than there was back then.”
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Max Chen contributed to this article.