Increased retail trading is 'largely responsible' for elevated stock prices and record-high options activity, says Deutsche Bank
Deutsche Banksays record-high call volumes are driven by retail investors.
- They found an increasing number of
call optionsare on small companies with low profitability.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Deutsche Bank is seeing signs that individual investors are driving recent stock rallies and options activity.
Average call volumes over the last three months have hit a new peak, exceeding the 2009 high, and the size of the contracts suggests that it's driven by retail investors, said a team of strategists led by
"The bulk of the increase continues to be driven by very small contract sizes, reflecting retail buying. In our view, increased retail participation is largely responsible for elevated equity multiples with institutional investors across discretionary and systematic strategies chasing since March," Deutsche Bank said.
The strategists found that bullish call volumes measured in dollar terms have been focused in large growth companies, but increasingly are shifting towards
In a Deutsche Bank list of stocks with the highest call volume as a percentage of market cap, GameStop, Bed Bath and Beyond, and AMC were in the top 10.Those stocks have rallied immensely this week as retail investors on reddit forums discuss their trading activity in the companies.
- Public to be allowed to watch Karna assembly budget session
- Delhi Assembly's budget session to begin on March 8
- Patanjali’s Acharya Balkrishna is the biggest loser on Hurun’s Rich List of Indian billionaires
- Delhi CM announces Sharman Joshi-starrer movie 'Fauji Calling' tax free in Delhi
- Ravichandran Ashwin, Joe Root, and Kyle Mayers shortlist for ICC's Player of the month