In support of its great "sentiment engine," there's a rush to develop the next big wave of retail trading in the US. The irony here - with all the recent sabre-rattling around tariffs - is that this new wave requires exporting access to US equity markets to additional retail investors around the world. Alphacution adds significant new evidence to its ongoing case on the matter...
Alphacution adds new perspective to its retail option order flow analysis; develops model to estimate retail option order size (in contracts) by order type and broker. Bottom line: "Frictionless" trading caused total retail option orders to maintain a level that is at least triple that of late 2019...
Alphacution publishes new charts comparing SPY options, SPX options, and SPX futures options to illustrate the blessing - and curse? - of the 0DTE phenomenon, reliance on retail investors, and market concentration risks...
For the longest time, the use of technology gradually removed excess costs and other inefficiencies from financial markets. This evolution wasn't just about speed, although that was a key element. And then advanced quantitative trading techniques, social media techniques, and mobile-first technologies converged. This is Alphacution's view on what's happened since and what that means for the road ahead...
Alphacution details anomalous behavior between Robinhood, Morgan Stanley & Co, and other wholesale market makers in recent retail option order flow...
Alphacution improves its estimate for retail traders' share of US equity index option volume...
Alphacution presents new perspectives on US retail investor behavior in equity options...
The Wall Street Journal's Gunjan Banerji uses Alphacution's estimates in "Some Amateur Investors Retreat From Markets."
Alphacution provides data and analysis for The Wall Street Journal's Alexander Osipovich article, "High-Speed Trader Simplex Warned About Potentially Abusive Options Strategy."
Alphacution analysis and commentary featured in Declan Harty's Fortune article, "Robinhood once terrified Wall Street. But now the stock is down 73% and layoffs have hit morale. Will the next chapter be a takeover or a turnaround story?"
