Frenzied Stock-Options Trading Shows Individual Investors Are Still Hungry for Risk
Originally published by The Wall Street Journal
Trading in single-stock options contracts is near levels reached in 2021, when a new generation of amateur investors shook up Wall Street
Individual investors aren’t letting anything get them down these days.
Their fervor is showing up in frenzied trading of options, or contracts that allow holders to buy or sell a stock at a set price, by a certain date. Volumes in options tied to individual stocks have recently reached levels seen during the meme-stock mania of 2021, about $700 billion of notional volume a day, according to Carrick Lane, an investment manager specializing in options strategies. The prices of call options, which give the right to buy, have eclipsed levels seen during that time.
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About Carrick Lane
Carrick Lane is an investment manager and advisory firm that delivers volatility-based solutions through actively managed options strategies. The employee-owned firm manages more than $3 billion for ultra-high-net-worth investors, family offices and institutional advisors. The team’s deep experience and ability to simplify complex markets allow investors to proactively adapt in an evolving market.