A Brief History of Options Trading

Though options have been looked at as a tool for speculators, it actually started as a hedging instrument. Its history goes back into the past,when ships sailed across oceans and faced great risks.
The Greeks, Romans and the Phoenicians all used some form of options. In recent history the famous Tulipmania of the 17th century saw wide usage of options, which were later dishonoured. Resulting in a bad name for options trading.
The South Sea bubble also had its share in giving options a bad name. But every time options made a comeback.

In modern times the opening of the Chicago Board Options Exchange(CBOE) on April 26,1973 for trading in standardized listed options was a major milestone. The CBOE has continued to grow and has been a major reason for the healthy growth of the options market. Now options have become popular and spread to many other countries and exchanges.