The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. On today’s daily call, we are going to talk about the Chicago Board of Options Exchange, more formerly known as the CBOE. You probably hear these terms or these letters thrown out all the time, but I want to let you guys know what their role is in the market, what they do and also, why we need them and the products that they offer. I think the first thing to know is that it is the largest options exchange in the world. The CBOE was started back in 1973 and really, the role of the CBOE is to be just a medium of exchange. They we’re probably one of the first and probably if not, the foremost in standardizing contracts with options. When they started, option contracts had no standard size. Now, we have generally standard sizes, 100 shares per contract, etcetera, standard expiration dates. And so, the CBOE was probably a big part of that in the early days. A lot of the contracts that they trade now are tons and tons of ETF options, stock options, l