The history of options trading can be segmented in different periods. Options trading was never an a newly invented concept in the early 1900’s. In fact it began way back as a means for speculators and investors to acquire a right. The “right” had a certain value to it.
The evolution of options trading thus went from informal and primitive, to a non-standardized process, finally culminating in a highly efficient and standardized process which we see here today. That is why when you want to buy an option contract today, there is always another party willing to take on a opposing view and sell you one.
Please read these articles in its proper order to know more and get a feel of how options trading had evolved over time.
1. Beginnings of options trading
2. Trading of non-standardized option contracts
3. Regulation of options trading
4. Inefficiency of trading options in the 1930’s
5. The standardisation of option contracts
6. Establishment of the options clearing corporation
7. Trading of put options began in 1977
8. The role of OCC