What This "Meme-Stock Mania" Did for Trading As messy as it was... the 2021 meme-stock craze changed the game for retail traders. They could now move markets en masse all thanks to a strong social media community. For many, it was an addicting feeling of control. Fast forward to 2025, and those speculative traders are still here. Except now they're not just trading meme stocks, they've become a key part of mainstream trading. In fact, they're part of what JPMorgan is calling a "speculative buying frenzy" in 2025. Why "Speculative Trading" Is on the Rise in 2025 Retail traders are using speculative trades at a rate we haven't seen since 2021. Several factors are contributing to a rise. There's a volatile political climate from tariff trade wars. Plus an emergence of quantum computing tech to power AI, and the rise of short squeezes from heavily shorted companies. Factor in a record high on the S&P 500 and retail traders' appetite for risk is growing. In May 2025 alone, speculative 0DTE options trades (these are options trades that are opened on the option's expiration date) made up 61% of all SPX options trading - a new high. With retail responsible for 54% of that volume. Total U.S. options volume also more than doubled from 5 billion contracts in 2019 to 10 billion contracts in 2023. It's on track to break new records with 11.4 billion contracts. Overall, trading is now less about investing and more about quick trades with big potential payoffs. |
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