Keep pulling the thread on David Silber.
Average daily options volume is on track to be approximately 80 million contracts in June of this year, up from 55 million a year ago and 10-12 million about 10 years ago.
The notional value of the most recent June options expiration is estimated to be around $8 trillion, the largest in history.
Citadel Securities' risk management for its institutional options business relies on accessing different channels of order flow, including on-screen, retail, and risk recycling from other products and regions.
The average institutional client on Citadel Securities' desk trades options that expire in less than 40 days.
In approximately 2001, Paul Allen executed a multi-billion dollar collar on Microsoft stock, creating a significant skew of approximately 13 vols between the October 55 put and the 90 call.
Around 2010, the institutional cash equities trading business became more algorithmic, leading to a reduction in headcount, smaller average print sizes, and lower trading costs for clients.
David Silber joined Citadel Securities around Labor Day of 2019 to launch the firm's institutional equity derivatives business.
Since its launch in 2019, Citadel Securities' institutional equity derivatives team has grown to approximately 20 people.
David Silber believes Citadel Securities is now one of the leading listed options providers in the institutional space.
Approximately 60% of the $8 trillion in notional value from the June options expiration was in the SPX morning expiration.
During the most recent options expiration, Micron expired more notional value than the IWM or the Russell index.
In the current market, some large-cap stocks like Micron are experiencing a 'spot up, vol up' regime.