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Goldman: Retail Single-Stock Option Notional 5-Day Average Exceeds $250B

According to Goldman, the 5-day notional average topped $250 billion for the first time since 2021, with daily volumes up $100 billion in six months.

Summary

Retail investors’ risk appetite is rising as the 5-day average of notional retail single-stock option volume surpassed $250 billion, the highest level since the 2021 meme stock frenzy. According to Goldman, daily volumes have increased by $100 billion over the past six months.

Terms & Concepts
  • Options: Derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a set price before or at expiration.
  • Notional Volume: The total dollar value of the underlying assets represented by traded contracts, used to gauge market activity without reflecting actual cash exchanged.
  • 5-Day Moving Average: A short-term average of a metric over five trading days, used to smooth daily fluctuations and identify near-term trends.