Ever wonder what your fellow options traders are doing, and how and why they are doing it?  

Here at InvestorPlace, we wondered just that. So, to find out what those in the options trenches are doing, we went straight to the source.  

We conducted a survey of 1,166 traders that revealed some very interesting results, including:  

* How much time these traders spend trading each week
* How many trades they make per month
* How many brokerage accounts they have
* What are the biggest challenges they face when trading options
* And much, much more  

Take this quiz now to see how in tune you are with your fellow traders.  

Question 1

Traders can spend so much time watching their trades that it becomes a full-time job. Of course, for this to pay off, you have to make enough money to make this possible. So, how many hours a week do they spend trading?  

True or False: More than half of OptionsZone traders spend less than six hours per week on trading.  

Question 1: The answer is False. Our survey found that 55% of respondents said they spend six hours or more hours per week trading options. Twenty-three percent said they spend six to 10 hours per week, while 10% of respondents essentially do it full time, spending more than 30 hours per week trading.  

Question 2

The market we’ve faced for the past year has greatly favored traders, and that leads us to our next true or false statement.  

True or False: Most option traders are not very active — making less than six trades in a month.  

 

Question 2: The answer is False. We have a busy bunch of traders. Our survey found that 55% of respondents make at least six trades per month, while 33% are very active traders, making more than 10 trades per month.  

Question 3

Traders come in all varieties. Some of us call ourselves “swing traders” because we hold a positing for a few days or a few weeks. The “day traders” move in and out of positions in the same day, while “position traders” have a longer-term outlook of anywhere from one month to several years. Where do you fit in this spectrum?  

True or False: More people identified themselves as swing traders (few days to few weeks) than day traders?  

 

Question 3: The answer is True. It looks like we all have itchy fingers and are likely to pull the trigger on a sell after a few days and usually not much longer than a few weeks. Fifty-two percent of respondents identified themselves as a swing traders.  

Question 4

There are many ways to go about playing the stock market these days: stocks, ETFs, options, futures. But one investment vehicle was more popular than others.  

True or False: Options were cited as the favorite investment vehicle by our respondents.  

 

Question 4: The answer is True. This one is a no-brainer. Not surprisingly, options are what our survey respondents said they trade most often. More than half of our respondents (55%) cited options as their most frequently traded security.  

Question 5

The tools available for options traders have improved greatly since the emergence of online trading. Real-time quotes and the ability to trade electronically make options trading easier than ever, but two holdovers from the past still factor into many people’s decision-making process: investment newsletters and stock research. Which one is used more often?  

True or False: You should always use a shopping list when you go to the grocery store and stick with it.  

 

Question 5: The answer is False. This one was close — really close. Fifty-three percent of those surveyed said they often use investment newsletters to help them trade, and 52% said they often use stock research to help them make decisions.  

Question 6

We know the financial crisis and market volatility has made buying stocks a long, long, long-term proposition. But what has it done to trading? We wondered if the past year has caused traders to increase their activity or pull back on the reins.  

True or False: Most of our traders are trading more often than they did one year ago.  

 

Question 6: The answer is True. A whopping 66% are trading the same or more than they were one year ago. And a stunning 80% plan to trade at least the same or more in the coming year! Besides driving us nuts, it looks like the financial crisis has unleashed the short-term trader in many of us.  

Question 7

Obviously the traders in our survey said that they use options to generate profits, but trading isn’t all about greed, is it? Surely our traders are using options to hedge against the downturn, or at the very least generate income in a low-interest environment.  

True or False: More people are using options to generate income in a low-interest rate environment than to make a quick buck.  

 

Question 7: The answer is False. Are we all a bunch of greedy jerks? Yes, it appears so. You spoke loud and clear — 92% of you trade options for one reason, and one reason only: to MAKE MONEY!  

Question 8

There are many factors when entering an options trade that make it difficult for many of us: which stock to use, which contract, how long do you plan to hold the trade, and so on and so on. What is the easiest part of building an options trade for those in our survey?  

True or False: It’s easier to pick the underlying stock for an options trade than it is to pick the correct option contract for the trade.  

 

Question 8: The answer is True. The least difficult part of an options trade, according to the survey, was getting the underlying stock right (23%), followed by picking the right option contract (14%).  

Question 9

2010 was another big year for exchange-traded funds (ETFs), as people used these investment vehicles to trade individual sectors without having to target individual stocks. Then again, many traders like to use options on indexes to ride the movements in these headline-grabbing stock groupings. What do our traders like to do?  

True or False: OptionsZone traders prefer to trade options on ETFs over stocks or index options.  

 

Question 9: The answer is False. It may have been the year of the ETFs, but OptionsZone traders love to trade options on equities. Why? Because, we are greedy and like to MAKE MONEY! And equity options have given us the biggest pops during the last 12 months.  

Question 10

For many traders, knowing when to get in or out of a trade are the toughest decisions to make. What is most challenging part about trading options?  

True or False: More traders have problems determining when to enter a trade than determining when to exit one.  

 

Question 10: The answer is False. There’s a famous quote from “The Godfather: Part III” that goes, “Every time I try to get out, they pull me back in.” Yes, getting out of an options trade is the most difficult part of trading options, according to OptionsZone readers. Thirty-five percent reported that knowing when to exit was the hardest aspect of trading options.