When Options Trading Goes According to Plan

Options-based ETFs are one of the fastest-growing categories in the market today, with product proliferation and adoption rising quickly. As more products and assets enter this category, we are asked: Can the options market support so many of these strategies?

The short answer is yes. To illustrate that, consider the experience of the capital markets team transacting in the suite of defined outcome and 100% Buffer ETFs from Innovator ETFs.

This past week, we witnessed a rare occasion. An entire lineup of options-based strategies—the Innovator Defined Outcome and 100% Buffer Protection series—reset on a single day. On Oct. 1, monthly, quarterly, six-, 12-, and 24-month buffer and outcome strategies—30 in total—reset. This kicked off another outcome period with new caps and buffers.

It was a busy day of options trading for Innovator.

According to the firm, more than 320,000 options contracts were traded on that day on behalf of these ETFs. Some $2.5 billion in assets rolled on that reset day. These funds also picked up more than $320 million in fresh creations on Oct. 1, with massive volume across the funds. It all went down without a hitch.