Retail investors prefer options trading over multibagger stocks in last 13 years: Here's what trends indicate

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Also Read: Excitement and worry as stock options trading booms in India
Beyond 2019, interest in stock options saw a significant surge touching 100 per cent average interest over time in peak levels in 2023, then dropping to 75 per cent till date. Interest in multibagger stocks remains at 25 per cent, as per google trends. Options are a form of derivative contract that gives buyers of the contracts (the option holders) the right (but not the obligation) to buy or sell a security at a chosen price at some point in the future.

Option buyers are charged an amount called a premium by the sellers for such a right. Options are generally divided into 'call' and ‘put’ contracts. With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price.

With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price. In its derivatives monthly rollover report, domestic brokerage firm Religare Broking revealed Nifty closed at around 19,850 after volume weighted average price (VWAP) based selling activity was witnessed throughout the day. Also Read: Nifty November series outlook: 4 stocks where investors can park their money; do you own? In its report, Religare highlighted that at 95 per cent, textile, infrastructure, capital goods, and banking are the sectors where the highest rollovers were witnessed in the October series.

Whereas at 90 per cent, power, metals, and media were the sectors where lowest rollovers were witnessed. However, market experts and analysts have since maintained their cautious stance that options activity is more speculative than for hedging purposes. This