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by totalZero
2156 days ago
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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. |
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