Retail traders are using 0DTE options again - and this is what they're doing
By Steve Goldstein
Retail traders are turning again to the popular, but risky, strategy of trading short-term options.
According to JPMorgan, retail interest in so-called zero-day-to-expiration options rose, with selling of the Nasdaq 100 QQQ and S&P 500 SPY exchange-traded funds seeing the largest weekly sales since the beginning of the year.
They sold $1.2 billion worth of the S&P fund and $1.1 billion worth of the Nasdaq fund.
Outside of options, retail traders did however buy equity ETFs - notably the China large-cap ETF FXI- while selling individual stocks, including Nvidia (NVDA).
JPMorgan relies on a methodology that focuses on transactions routed to wholesalers to identify retail trades.
-Steve Goldstein
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05-09-24 0926ET
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