10 Busted Myths of Options Trading

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Myth #10: Options trading is a fad, and trading volume will fall off once the market settles.

For those who still harbor the myth that options are a fad, we offer you the following thoughts.

"I think that people are going to start to take control of their finances just like they take control of buying their own airplane tickets, and just like they take control of a lot of things in life that they may not have done 15 or 20 years ago," says Tom Sosnoff. This just means that more and more individual investors will continue trading options.

According to Don Montanaro, "If you look at the full universe of people in this country who have a relationship with a brokerage firm you are looking at 2% or 3% of those clients at most that have accounts that are approved for trading options. So, 97%-98% of people who have brokerage accounts and relationships in this country are not even approved for options trading. What's neat is that because of a lot of the innovation in products over the last several years ... that 97%-98% of people is becoming more and more aware of the existence of options and what they're for."

A fad, we think not. Myth busted!