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The Need for Transparency: Drawing the Line on Counting Options Volume

Traders Magazine, May 2006

Mark Longo

Few subjects in the options world are drier than transparency. However, recent events have suddenly thrust this obscure topic into the spotlight. This renewed interest can be traced back to the explosion of dividend trades in the option markets. Dividend trades are short-term trades involving large numbers of contracts where little capital is at risk and no liquidity is added to the marketplace. The record volume pouring into these trades has re-ignited an old debate about volume in the options industry.

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