Equity Options Volume For First Half Of 2000 Outpaces Record Year

Chicago—July 7, 2000

The Options Industry Council (OIC) announced today that equity options volume for the first six months of 2000 has surpassed the same period in 1999, a record trading year for the options industry, by nearly 68 percent. During the first half of 2000, the nation's options exchanges traded a total of 329,610,902 equity option contracts, compared to 196,340,478 contracts during the first half of 1999.

June equity options volume was 50,867,008 contracts, a 60 percent increase over the 31,892,516 contracts traded in June 1999. Open interest at the end of the month stood at 56,390,780 open contracts. Equity open interest is the total number of options contracts not yet exercised or allowed to expire and is one indication of longer-term investing in equity options. Average daily equity volume in June was 2,312,137 contracts compared to 1,449,660 contracts in June 1999.

"We're encouraged that investors are taking the time to learn more about equity options and are discovering strategies to use them wisely. For example, in the current market, equity options are a viable tool that investors can use to hedge risk, " said Paul Stevens, OIC. "We hope that more and more investors take advantage of OIC's Web site or the new 1-888-OPTIONS call center which provide expert educational resources on equity options."

An equity option is the right but not the obligation to either buy or sell 100 shares of stock at a predetermined price (strike price) on or before a fixed date (expiration date).

The Options Industry Council is a non-profit organization founded in 1992 by the nation's options exchanges to provide investor education about equity options. Today, its members include The American Stock Exchange, Chicago Board Options Exchange, Pacific Exchange, Philadelphia Stock Exchange and The Options Clearing Corporation. OIC's free educational programs include: an educational Web site at www.optionscentral.com, evening seminars throughout the continental United States and Canada, instructional videos, educational brochures and interactive software. More information on available by visiting the Web site or calling 1-800-952-8665.

Options Industry Equity Options Volume Statistics

Equity Option Volume Records

• Monthly - March 2000 - 66,172,654 contracts
• Daily - April 14, 2000- 4,190,680 contracts
• Annual - 1999 - 444,765,224 contracts
• Monthly Open Interest - April 2000 - 63,292,614 contracts