10/21/2025
The froth continues. Here is chart of ODTE option trading. That stands for zero days to expiration. In short the option expires the day you buy it, rather like betting o a roulette wheel. I cannot find the dollar volume of a US Exchange but I doubt it is more than $1.5 Trillion.
Time is always the enemy of buying options, one day is ridiculous. But on a 500+ point day like Monday it works. Note this indicator has tripled in the last two years.
And then there are leveraged ETFs. This is a listed stock which invests in a specific industry or as now, AI.
In the last 15 years this has gone from less than 100 to 701, a 7x increase. ETFs are being introduced with 5x leverage. It won' take much of a sell-off to wipe out an account.
This are not exact indicators, only windsocks. The winds are approaching hurricane strength.
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