Retail Traders Are Piling Into Viral Options Calls at All-Time High Level
- It creates self-fulfilling buying pressures: Jason Goepfert
- Massive buying of bullish options helps fuel craze in GameStop
Signage at a GameStop Corp. store in San Diego, California, U.S., on Monday, Jan. 25, 2021.
Photographer: Bloomberg/BloombergThis article is for subscribers only.
It’s a racetrack adage that nobody has ever bet enough on a winning horse. In the options market, they keep trying.
Flush with winnings in stocks like GameStop Corp. and Tesla Inc., the smallest options traders, those who buy or sell 10 or fewer contracts at a time, have piled into record bullish bets in the last three weeks, adding nearly 60 million call options, according to data compiled by Sundial Capital Research. That’s 20% above the volume late summer, itself a period of unprecedented exuberance.