In this JLN video, Emily Sweet, senior analyst with Cerulli Associates, goes through some key findings from a study the firm conducted titled “How Financial Advisors Use and Think About Exchange-listed Options.”
The study, sponsored by the Options Industry Council, surveyed 600-plus financial advisors who both use and do not use options on behalf of clients. There were a few key takeaways.
One substantial hurdle to using options cited by those who had stopped using the instrument was the time needed to manage options trades. The other main roadblock is simply confidence. Advisors need to be educated — 50 percent who are considering using options would find educational resources regarding implementation and position management useful. Those hurdles can be overcome with the right resources and technology.
Overall, the results point to more options use by financial advisors in coming years. To read the study, go here.