Many retail traders are once again embracing the popular, yet risky, approach of trading short-term options.
According to JPMorgan, there has been an increase in retail interest in zero-day-to-expiration options. The selling of the Nasdaq 100 QQQ and S&P 500 SPY exchange-traded funds has reached its highest weekly sales since the start of the year.
They offloaded $1.2 billion of the S&P fund and $1.1 billion of the Nasdaq fund.
Aside from options, retail traders did, however, choose to purchase equity ETFs, with notable interest in the China large-cap ETF FXI, while simultaneously selling off individual stocks, such as Nvidia NVDA, 0.24%.
JPMorgan utilises a methodology that places emphasis on transactions directed towards wholesalers in order to identify retail trades.