Retail investors are trading more options, according to recent data from J.P. Morgan.
J.P. Morgan’s data showed that retail-investor participation in the options market hit a new record recently. That’s after peaking earlier in the year and then declining during the summer.
J.P. Morgan says that a lot of this activity was the result of retail investors trading S&P 500 and SPDR S&P 500 ETF calls and puts.
“Notably, they have been selling options delta since October vs. buying in September,” J.P. Morgan analysts wrote in a note.
Retail-investor appetite for options has continued to grow over the past few years as financial platforms have increased access to the options market.