Retail Traders Are Getting Bigger Than Ever in US Stock Options
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Non-professional investors now make up a bigger part of the US options market than ever, pouring money especially into short-term bets and favoring technology stocks, according to JPMorgan Chase & Co.
Retail traders were responsible for 18.3% of the total options activity in June, a record, the bank’s strategists led by Bram Kaplan and Emma Wu wrote Friday in a note to clients on Friday. More than 60% of their orders were for contracts expiring a week out or less, with technology options being of the highest demand among single-stock trades.