Bullish Tech Bets Fuel Options Frenzy

Bullish Tech Bets Fuel Options Frenzy

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Interactive Video

Business

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The video discusses a significant surge in options trading, with a 77% increase since the start of the year, driven by tech stocks like Tesla and Microsoft. Call options are dominating, and their costs have surpassed puts for the first time in years. This trend is partly due to FOMO among investors, who are cautious about high valuations but eager to join the rally. A large retail component is evident, with increased mentions of Microsoft on market-focused subreddits. Goldman Sachs advises against buying call options, suggesting selling them instead, as they believe the gains are unsustainable.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the retail component influenced trading options according to the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What recommendation does Goldman make regarding call options?

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