Stock Market Options Trading cover image

Stock Market Options Trading

113: The Life Cycle of an Options Trade

Mar 28, 2024
Mat Cashman, Principal of Investor Education at OCC, discusses the life cycle of options trades, evolution of options trading from floor to electronic marketplace, changing SPX options increments, intricate journey of options trades, Delta neutrality, market maker strategies, market trends, and trade structuring.
47:19

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Understanding the life cycle of options trades is crucial for grasping market dynamics.
  • Market makers play a key role in options trading, influencing risk management and dealer positioning.

Deep dives

Overview of Options Trading Marketplace

The podcast episode delves into the intricate workings of the options trading marketplace. Matt Cashman from the Options Clearing Corporation explains the back end operations of the market, emphasizing vital components like the life cycle of options trades. The discussion sheds light on how options trading functions beyond the surface level retail trading experience, providing insights into the roles of different entities within the market structure.

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Listen to the best highlights from the podcasts you love and dive into the full episode