Schwab Study Finds Active Traders Are Optimistic About the Market Despite Recent Volatility

Wednesday, May 14, 2008 9:00 am PDT



Public Company Information:


SAN FRANCISCO--(BUSINESS WIRE)--After one of the most volatile quarters in recent history, Charles Schwab today released details of the Charles Schwab Active Trader Sentiment Survey designed to take the pulse of nearly 500 individual investors who trade frequently. Among the findings:

  • Nearly half of the respondents (49 percent) were 55 years or older.
  • 76 percent expect the S&P 500 to rise or trade sideways in the next six months.
  • Eight-in-ten respondents intend to maintain or increase the number of trades they make in the next six months.
  • Four out of ten traders surveyed now regularly trade options, 95 percent of which expect to maintain or increase their options trading during the next six months.
  • Half of the respondents view volatility as an opportunity in the marketplace.

Traders are still very engaged with the market and are finding opportunities despite a difficult environment so far this year, said Richard Levine, vice president of Schwab Active Trader. These sophisticated, experienced investors have the ability to trade in up and down markets. We remain committed to helping traders be successful in all market environments by offering powerful trading tools, knowledgeable trading specialists and educational seminars on everything from stock selection to risk management.

Trader education has become particularly relevant with the growing popularity of options trading among active investors seeking out more sophisticated options strategies.

In fact, the Schwab survey showed that 75 percent of traders who incorporate options in their portfolio do so with the goal of generating income or hedging for risk management. Only one-in-four traders indicated that market speculation was the leading reason to trade options.

The findings of the survey reveal that investors are starting to embrace options as a way to help protect their investments and potentially profit in an unstable market, said Randy Frederick, Director of Derivatives at Charles Schwab. Active traders are taking the right steps to become informed investors, and they are taking advantage of more advanced tools and strategies.

Survey Methodology

Survey data were derived from nearly 500 active traders and investors based on responses collected during February and March of this year. The data was analyzed by Directive Analytics and has a statistical accuracy of + or 4.4 percent at 95 percent confidence level.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.2 million client brokerage accounts, 1.3 million corporate retirement plan participants, 332,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at (0508-6937)

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction. Call your local Schwab office or write Charles Schwab & Co., Inc. 101 Montgomery Street, San Francisco, CA 94104 for a current copy.


Charles Schwab
Sondra Harris, 415-636-3292
Intermarket Communications
Beth Leri, 212-754-5415

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