Retail Traders Keep the Market Afloat with Massive Options Trading

On a recent Friday, the stock market saw a significant drop, but something unusual happened. Retail traders, or regular people trading stocks, showed up in force. They bought a ton of options, making it the busiest day ever for options trading. Over 108 million contracts were traded, which is a huge number. These traders weren't just buying options; they were mostly buying calls, which are bets that the market will go up. This shows they are feeling pretty confident. In fact, their buying power was 11% stronger than usual, which is a big deal. This was the 24th week in a row that they showed this kind of confidence, tying a record. This isn't just a one-time thing. All year, retail traders have been buying stocks when they go down, which is called "buying the dip. " This has helped the market reach new highs, even with all the bad news around trade, politics, and the economy. Meanwhile, other big investors, like hedge funds, have been sitting on the sidelines. This is a big change from how things used to be. In the past, hedge funds were seen as the "smart money" that led the market. But this year, it's the regular folks who seem to be driving things. And so far, their strategy has worked. The S&P 500, a major stock market index, is up nearly 2% this week after Friday's drop. Even big companies are noticing this trend. Charles Schwab, a major brokerage firm, reported stronger-than-expected earnings due to a jump in retail trading activity. Daily trades on their platform were up 30% compared to last year. But not everyone is saying it's all smooth sailing. While some experts think the market could keep going up, especially with seasonal strength in November, they also warn that investors should be careful in the coming weeks. It's a mix of good news and a reminder to stay cautious.