January 2022 Options Newsletter

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New year, new opportunities in options

2021 was an eventful year for the options on futures market. Overall average daily volume (ADV) increased by 6% year over year, reaching 3.3M contracts, and open interest (OI) averaged 54.6M daily contracts.

We're excited to see what new trends and opportunities this year brings to the options market. One clear trend that has emerged in early 2022 trading is the growing interest in SOFR options, where OI has jumped from 3K to 77K contracts in just three weeks.

2021 in review: an options recap

Agriculture options ADV increased 10% YoY to an all-time record of 273K contracts, bolstered by record ADV in Corn options.
Interest Rate options ADV was up 9% YoY, with yield curve uncertainty and inflation concerns driving elevated activity in Treasury options.
Equity Index options ADV rose 6% YoY, with record ADV in both E-mini Nasdaq-100 options and E-mini Russell 2000 options.
Weekly expiring options saw outsized trading across asset classes as short-term volatility returned:
- E-mini Nasdaq-100 weeklies +113%
- Treasury weeklies +64%
- WTI weeklies +47%
- Ag weeklies +24%
- CAD/USD weeklies +23%
- Gold weeklies +17%

Most active options products by ADV - 2021

Growing pools of options liquidity