What is the average salary for an option trader?

The average options trader salary in the United States is $110,139. Options trader salaries typically range between $65,000 and $185,000 yearly . The average hourly rate for options traders is $52.95 per hour.

What is the average age of options traders?

The average age of options traders is 40+ years years old , representing 58% of the options trader population.

What do options traders do for a living?

These traders are required to create options contracts and develop forecasting models so that they can determine the optimal price to buy an option to maximize profit and minimize risk . They must assist head traders with client services to allow more trading revenue production.

Does Warren Buffett use options trading?

Throughout his investing career, Buffett has capitalized on the advanced options-trading technique of selling naked put options as a hedging strategy.

What is the difference between a stock trader and an option trader?

Differences between options and stocks A stock is an ownership stake in a company, and it rises and falls over time depending on the profitability of the business. In contrast, an option is a side bet among traders over what price a stock will be worth by a certain time .

Options Trader Overview | What is an options trader?

An options trader is a financial professional who works with the stock market. They work with clients and help them to invest in different stock options, which are contracts that give an owner of the stock the right to buy or sell the stock at a fixed price for a certain period of time. Options traders may work exclusively for themselves or a company.

Options traders must be extremely knowledgeable and skillful when it comes to the options market. Trading in options is often a lot riskier than trading in stocks, as options have a greater potential for large losses than traditional stocks do. This means an options trader must be savvy on the options market and be able to perform market forecasting that can help limit a client's risks and maximize their profits.

Options traders come in four different categories. Retail investors are options traders who buy and sell options with their own money for profit. Industrial traders are options traders who perform the job for large financial entities like mutual funds and hedge funds.

Broker-dealers facilitate option trades on behalf of a company and its client base. Market makers are required to make bids and offers on the options traded on specific securities; therefore, market makers provide liquidity in the options marketplace.

Though it is possible to be a self-taught options trader, many who work for large financial firms possess either a bachelor's degree or master's degree in finance, economics, business, or another related field. Many also have to pass complex financial exams to gain certifications in the field. Examples of these exams include the Securities Industries Essential exam, and the Series 6 and Series 7 exams.

Salary$110,139
Growth Rate4%
Jobs Number1,433
Most Common SkillFX
Most Common DegreeBachelors degree
Best StateNew York

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Options Trader career paths

In addition to switching up your job search, it might prove helpful to look at a career path for your specific job. Now, what's a career path you ask? Well, it's practically a map that shows how you might advance from one job title to another. Our career paths are especially detailed with salary changes. So, for example, if you started out with the role of equity trader you might progress to a role such as finance advisor eventually. Later on in your career, you could end up with the title portfolio manager.

Options Trader

Learn more about options trader career paths

Average options trader salary

The average Options Trader salary in the United States is $110,139 per year or $53 per hour. Options Trader salaries range between $65,000 and $185,000 per year.

Average

Options Trader

Salary

$110,139Yearly

$52.95

hourly

$65,00010%

$110,000Median

$185,00090%

More options trader salary info

What Am I Worth?

Options Trader skills and job requirements

Options Trader skills

FX
Stock Options
Equities
Stock Market
Risk Management Strategies

Equity Options
Derivative
Order Flow
Financial Markets
Python

Options Trader requirements

Bachelor's Degree in Finance or Economics
Minimum of 5 years of trading experience
Deep knowledge of option markets, strategies and risk management
Proficiency in trading software and platforms
Familiarity with Financial regulations

Aditional options trader skills

Options Trader responsibilities

Enact, and manage equity block desk operation and set up floor broker network on NYSE.
Create VBA applications to automate basic trading functions and administration functions such as reorganization tenders and trade pricing issues.
Manage business, sales, marketing, international negotiation and communication for a commodities business.
Trade options profitably on screen markets and trade complex option spreads via telephone brokers at the CBOE and CME.

Aditional options trader responsibilities