Derivative call options overtook trading in real stocks for the first time ever at the end of August, due to Softbank’s huge longer-term call purchases of Big Tech companies and the growth of short-term small trader purchases on online platforms like Robinhood. SoftBank were reported to have spent $4bn on $30bn notional; small buyers $37bn on $500bn of notional. As most of the latter were unhedged, marketmakers have been forced to buy shares in the underlying stocks . . .
To read this article, please log in or sign up to one of our subscription packages.