This is a casino on crack | Forexlive
In the past year we’ve seen the implosions of:
- NFTs
- Meme stocks
- Crypto
- Tech stocks
With that, you would think retail traders would sober up. Instead, they’ve switched from hard liquor to crack cocaine in the of ultra-short-dated equity options. Here’s a chart from Goldman Sachs showing that 44% of SPX volume in the third and fourth quarter (so far) has been in options with less than 24 hours to expiration.
Today is quad witching so it makes me skeptical of price action but there’s also a bigger picture story here and it ends badly.
Whatever happened to investing?