Andrew Wilkinson - Interactive Brokers
Andrew Wilkinson, a senior market analyst at Interactive Brokers, sees several behind the dramatic increase in the volume of options trading.
According to Wilkinson, increased media coverage, a better understanding of options and an increased use by hedge funds are among the key drivers of growing volume. Other factors include: reduced transaction costs, a greater use of electronic trading, and increased liquidity.
Wilkinson also discusses his forecast for increased volatility this summer.
"I've seen a couple of trades in July and November (options contracts) that tell us that investors are positioning for greater volatility," he says.
Mohammed Hadi - Dow Jones Newswires
Options traders are speculating that Amazon.com is planning acquire Neflix , says Dow Jones Newswires options reporter Mohammed Hadi. Hadi warns it's an old rumor that has circulated before.
"There's not any credible reason to believe it," Hadi says, "other than the market seems to love it.
Hadi also talks about a puzzling spike in trading in options of Advanced Micro .