This paper separately investigates the relationships between the trading of a firm’s stock options and its CSR strengths and concerns. It confirms the benefits of options markets in fostering socially responsible corporate behaviors and revealing irresponsible behaviors. These effects of options trading on CSR are robust across different CSR measures, alternative model specifications, and after accounting for endogeneity issues. The channels through which options trading exerts its impact include external monitoring and information environment, as we find the impact on both CSR strengths and concerns is more pronounced in firms with weaker monitoring and poorer information environment.