Demand for stocks and options is at record highs. It’s a veritable “Traders Gone Wild” environment as retail traders (that’s you and me) gobble up stocks and options. The party started in 2020 and traders are pumping up the volume with even more exuberance.
Indeed, CNBC reports that average daily volume in stocks is skyrocketing:
|2021||14.7 billion (so far)|
*Source: Piper Sandler
And it isn’t just stocks that are getting extra attention.
Check out how options volume has exploded over the past 2+ years:
|2021||0.9 billion (so far)|
Interactive Brokers’ Steve Sosnick indicates that there has been a phenomenal rise in short-term call option trades.
So, where’s all of this extra volume coming from?
With the advent of retail brokers like Robinhood offering $0 commissions, millennials are flooding the markets. This is evidenced by the 6-million strong Reddit community that created a massive short-squeeze, sticking it to Wall Street hedge funds.
This demand creates movement. Stocks move farther and faster than ever before. The same is true for options.
All that spells one thing…. OPPORTUNITY!.