[JumpCrisscross]

> new groups of traders with a low barrier of entry make options much more liquid

Are you claiming Robinhood users are responsible for a significant fraction of option market liquidity over the past year? Because that’s categorically wrong.

[vmception]

All additional participants to the options market makes options more liquid.

No, I am not quantifying Robinhood users, only elated to see one chisel helping narrow the bid and ask spreads across expiration dates.

Shouldn't bother you that much.

[SpelingBeeChamp]

I don't know... that's certainly what I thought you were saying, and I don't like being misled.

[imustbeevil]

I read it as: regardless of Robinhood's volume, their popularity has caused other organizations to restructure their investment opportunities, and that has benefited all users.

It's the same as Tesla making electric cars popular. They don't sell the most cars, but you'd have a hard time arguing they haven't moved electric vehicles forward.

[totalZero]

I think it's reasonable to suggest that option activity among retail clients has increased over the past 12 months. Brokerages are reporting record levels of new account sign-ups, and many people are sitting at home trying to find ways to pass the time profitably. Obviously it would be nice to see some evidence about this, but I don't know where I would go to find that information publicly.

Options don't trade as frequently as cash on most names, so you don't actually need people to buy and sell in order to make the market tighter. They just have to place orders that tighten the spread. Price discovery becomes easier even if you only have one additional order placed inside the prior NBBO, because it affects the fit of the vol surface.