Appetite for risk is incredibly strong: Options trading volumes in loss-making Russell 2000 stocks have risen to ~6 million contracts per day, an all-time high. Volumes have more than doubled since April and surpassed the previous record set during the 2021 meme-stock mania. By comparison, options activity in profitable stocks is only 33% as large. Market activity is also becoming more concentrated, with the top 20% of small-cap stocks by options volume now reflecting 75% of small cap options trading. Most of this activity has been driven by retail investors chasing meme names, 0DTE options, and unprofitable firms. Retail can't get enough options.(The Kobeissi Letter)