Study: Investment advisors using more options

CHICAGO - May 12, 2011 - The Options Industry Council (OIC) today released the results of the Financial Advisor Benchmark Study, conducted by Bellomy Research, which finds options usage among advisors is on the rise and advisors who use options tend to have more assets under management than non-users.

OIC launched its Financial Advisor education program in 2009 and determined it was time for this first-ever look at advisors’ options usage. Bellomy Research was commissioned and interviewed more than 600 advisors throughout the U.S. The study found that nearly half of financial advisors used options in the last year for their clients. Additionally, more than a third of financial advisors who use options increased their use of options over the past few years, and one in three say they intend to increase it going forward.

The study shows that advisors with larger books of business are significantly more likely to use options than those with smaller books. Nearly all of the largest advisors use options for at least some of their clients. The study also found that financial advisors are using options primarily for income generation and hedging in response to market conditions, and they are very often doing so at the request of their clients. OIC is encouraged by the findings from this study as they will be used to help shape future educational efforts.

To access the summary and full study findings, visit:

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