Retail traders now bet 48 percent of their options volume on same day expiry lottery tickets

by

The Kobeissi Letter
@KobeissiLetter
Retail risk appetite is at record levels:

0DTE options contracts now account for a record 48% of total retail options volume.

This percentage has more than TRIPLED over the last 5 years.

Furthermore, 0DTE options reflected a record 30% of total US options volume in May.

By comparison, the 2022 high was ~18% while the average over the last 5 years is ~21%.

As a result, the average options contract now expires in under 3 days.

Retail demand for short-term options has never been higher.