Discover the latest trend in retail trading
- Retail traders are using 0DTE options again
- Interest in zero-day-to-expiration options is rising
- Large sales of Nasdaq 100 QQQ and S&P 500 SPY ETFs
- Retail traders buying China large-cap ETF FXI
- Selling individual stocks, including Nvidia NVDA
Retail traders are once again turning to the risky strategy of trading short-term options. According to JPMorgan, interest in zero-day-to-expiration options has been on the rise, with significant sales of the Nasdaq 100 QQQ and S&P 500 SPY exchange-traded funds. In fact, these sales have reached their highest levels since the beginning of the year, with $1.2 billion worth of the S&P fund and $1.1 billion worth of the Nasdaq fund being sold. On the other hand, retail traders have been buying equity ETFs, particularly the China large-cap ETF FXI, while selling individual stocks such as Nvidia NVDA. This trend has caught the attention of JPMorgan, who uses a methodology focused on transactions routed to wholesalers to identify retail trades.
Factuality Level: 2
Factuality Justification: The article is very short and lacks depth. It provides some information about retail traders’ activities in the options and ETF markets, but it lacks context, analysis, and expert opinions. The article does not provide a comprehensive view of the topic and may be misleading to readers who are not familiar with trading terminology and practices.
Noise Level: 2
Noise Justification: The article provides relevant information about retail traders turning to short-term options trading, backed by data from JPMorgan. It stays on topic, supports its claims with evidence, and offers insights into retail trading behavior. However, it lacks depth in analysis and does not explore broader implications or consequences of this trend.
Financial Relevance: Yes
Financial Markets Impacted: Options market, ETF market, Retail trading
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the increased interest of retail traders in short-term options, specifically zero-day-to-expiration options. It also mentions the selling of the Nasdaq 100 QQQ and S&P 500 SPY ETFs, as well as the buying of the China large-cap ETF FXI. While this information is relevant to financial markets and retail trading, there is no mention of any extreme events or their impact.
Public Companies: JPMorgan (JPM), Nasdaq 100 QQQ (QQQ), S&P 500 SPY (SPY), Nvidia (NVDA)
Private Companies: wholesalers
Key People: JPMorgan (Not specified)
Reported publicly:
www.marketwatch.com 
