Record 2018 Options Volume Driven by Financial Advisor Risk Management, Income Strategies

Renewed Volatility, Tech-Enabled Market Access Attracts New Users To Options Portfolio Strategies

SpiderRock Advisors Sees 40% Growth in Assets Under Management

CHICAGO, JULY 25, 2018 – Financial advisors and their individual and institutional clients actively engaged options strategies to guard against risk and take advantage of market opportunities in the first six months of 2018.

Total U.S. exchange-listed options volume reached a record 401.4 million contracts in June, after setting a record first quarter volume, according to The Options Clearing Corporation

“As market volatility moves higher and to more normal levels, as investors seek to lock in market gains and rebalance portfolios, and as financial advisors look for new strategies to achieve current income, the safety, transparency and efficiency that listed option strategies provide is attracting new participants,” said Eric Metz, CFA, Chief Investment Officer at SpiderRock Advisors, LLC.  

Metz added that SpiderRock, an asset management firm focused on providing customized option overlay strategies to advisors and institutions, saw a 40% percent jump in client business during the first half of 2018. 

“Many investors are sitting on impressive gains in their equity portfolios, but rebalancing away from stocks might trigger unappealing capital gains taxes,” says Metz. “We are seeing a new wave of wealth managers use option strategies to help protect gains while keeping core portfolios intact.”

The recent uptick in market volatility to more normal levels has made selling call options more attractive, according to SpiderRock.  Certain strategies can take advantage of this dynamic, aiding clients in their risk management goals.

SpiderRock Advisors uses proprietary financial technology to build and manage investment strategies for all market conditions.   According to Mr. Metz, investors are using a range of strategies in today’s markets, including:

  • Portfolio protection: Reducing downside exposure on the heels of the extended market run-up
  • Volatility management: Managing the amount of variation in the values of client portfolios as goals-based investing has become a focal point in financial planning
  •  Putting new assets to work: Helping nervous clients with large cash positions deploy capital by implementing options strategies that pick market entry points below today’s all-time highs
  •  Rebalancing: Reducing portfolio beta (in a tax efficient manner) back to initial strategic targets after experiencing portfolio drift

About SpiderRock Advisors

SpiderRock Advisors is an asset management firm focused on providing customized option overlay strategies to advisors and institutions.  Combining world-class technology with comprehensive derivative expertise, SpiderRock makes it easy for Institutions and Financial Advisors to add option strategies to their investment portfolios.

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Maisie Hughes

Head of Family Office Services

Maisie is responsible for business development and client portfolio management for SpiderRock’s family office clients and prospects. She began her career at Goldman Sachs Asset Management, and since 2006 has worked with institutional clients in a business development capacity in both traditional and alternative asset classes. Prior to joining SRA, Maisie was a Vice President and Business Development Manager at Wellington Management Company in Boston where she worked to broaden the scope and scale of the firm’s engagement with family offices, wealth advisors and private investors. Prior to Wellington, Maisie spent 7 years on the business development team at AQR Capital Management in Greenwich, ending as a Vice President responsible for institutional sales and relationship management in the Southeast and Mid-Atlantic United States as well as Canada.