The American market is increasingly resembling a casino. Sharp fluctuations in the value of individual stocks—sometimes by tens of percent, even for large-cap companies—have become commonplace. Compounding this trend is a surge in demand for short-term options, with trades lasting mere hours or even minutes driving options activity to near-record highs in 2024.
SpotGamma data reveals that about half of all options for companies like Nvidia and Tesla now expire within five days, while same-day expiration options for the S&P 500 index have hit unprecedented levels. These highly speculative instruments can deliver massive gains or losses within seconds, rendering traditional stock analysis nearly irrelevant.
This trend is distorting markets, as options allow traders to leverage substantial capital with only a fraction of the required funds. At the same time, the allure of instant wins or losses is fostering gambling-like behavior. Investing has transformed into a high-adrenaline pursuit, encouraging participants to chase the next quick payout.
Despite mounting concerns about addiction and reckless speculation, Wall Street is actively exploring ways to broaden access to single-day options.
