Last weekend we discussed the staggering sizes hit in the options markets in recent days, which culminated with an absolutely blockbuster $904 billion in total option notional volumes on Friday, Nov 5 when countless momentum stocks went haywire trading purely on gamma flows and technicals, and prices terminally disconnected from fundamentals. But it was Goldman flow trader Scott Rubner who put it best, saying that “in the last two weeks, option trading in the USA has never been greater! After following the retail trading community for the last 18 years, I could never imagine typing these large numbers.”
Summarizing Rubner’s findings, this is the punchline behind the staggering numbers: single stock option notional (140%) now exceeds single stock shares notional, 72% of options traded have an expiry of two-weeks or less (think 2-3-4 days), and activity on the message boards is as high as it has been all year.
Goldman Stunned By The Record $2.6 Trillion In Option Notional Traded Last Friday | ZeroHedge