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This article examines the option investors� risk preferences and trading motivations that underlie option trading behaviours using adjusted moneyness when initial moneyness has been influenced by the time-to-maturity effect during the contract period. The statistics for the stationary time series of adjusted moneyness reveal that both call and put option investors essentially prefer to trade At-The-Money (ATM) options. The regression models for testing six hypotheses confirm that call and put option investors have significant risk aversion preferences and expectations of market reversion. Put option investors� trading motivation involves hedging their long and short futures positions by a way of portfolio management, such as the establishment of portfolio insurance or covered options. The motivation underlying the call option trading behaviour is still ambiguous, however.
