1.4 Lessons learnt
- The foundation of the option market was laid in 1920 by a man called Jesse Livermore speculating on moves on the stock market without owning the stocks.
- Initially, it was only possible to trade call options as put options had not been standardized yet.
- In the beginning, the market was confronted with a lot of resistance, mainly due to the lack of an obvious calculation of a fair price of an option.
- The market became more regulated and official in 1973 in Chicago.