Option Trading Volume Higher Than Underlying Stock Volume For First Time Ever
© Provided by Benzinga This year has been a year of firsts on Wall Street, and the options market is the latest to register an unprecedented surge in popularity. Goldman Sachs has reported that single stock options trading volume has surpassed the daily trading volume of the underlying stocks for the first time in history. Option Trading Spike: The graph below shows just how much option volume has skyrocketed relative to stock trading volume in 2020, and some market experts are concerned about how a flood of younger, inexperienced and risk-hungry traders may be impacting the market. With many Americans stuck at home for extended periods of time due to lockdowns, major sports and other events canceled and casinos closed, the number of retail stock traders has skyrocketed in 2020. Popular trading app Robinhood reported 3 million new accounts in the first quarter alone. Robinhood users reportedly have an average age of 31, and the company has said half of its users have never investe