Retail Investors Pile Into Big Tech Call Options, Risk Appetite Soars
Call options on US Big Tech stocks make up ~55% of new retail positions, near record highs, signaling strong bullish sentiment among individual investors.
Retail investors are showing extreme risk appetite, with call options on US Big Tech stocks accounting for roughly 55% of all newly opened positions, based on a 20-day average. This metric tracks directional bets rather than total volume, reflecting pure positioning.
Since the late March market bottom, the share of call option openings has jumped by 10 percentage points. The current level is just shy of the ~57% peak seen during the pandemic recovery rally in 2020. By contrast, during the 2022 bear market the figure fell to as low as 35%.
The data highlights that individual traders are heavily positioned for further upside in technology stocks.
Source: The Kobeissi Letter