E-Trade Financial found a surprising demographic group has been getting into options trading: millennials.
The online brokerage firm found that 40 percent of millennials with online trading accounts trade options at least once a month, whereas just 25 percent of their Generation X counterparts partake in options trading so frequently, according to a survey released Thursday.
"Millennials are digital natives," Steve Claussen, vice president of trader strategy at E-Trade Financial, said in a release. "And within this context it's understandable why this group may also be the most active options traders, as today there are a great many digital tools that make options trading easier to understand than ever before."
Jon Najarian, co-founder of the Najarian Family Office, said millennials might find the fast-paced nature of options trading appealing, "unlike stocks, which can be like glaciers."
Options trading has exploded over the past decade. The average daily volume for options trading rose from 11.4 million in 2007 to 16.5 million in 2017, according to data from The Options Clearing Corp. That represents a 45 percent increase.