Get Rich Quick
Options Data confirms that the issue of short-attention-span is now prevalent in all walks of human life.
For last many months, we’re witnessing a phenomenon in India where most of the volume in our stock-market is happening in options-segment.
Options is one of the segement in the market where many people belive that one can make quick bucks and can multiply your capital very fast!
How many of these people are successful ?
Well, not many. As per Zerodha’s founder, 90% of options -traders loose money ! And he is saying it on the basis of hard data!
It seems the short-attention-span , that is the result of all social media apps , is now affecting the stock-markets also.
But is it only India specific event !
Nope, it is happening worldwide .
The following chart from US S&P500 shows how options duration-period is coming down over the years .
It signifies that people want to be rich and that too overnight.
Other inference from this is that if these people remain in the market for long time, we should be expecting higher volatility in the markets as compared to the past.
This picture respresents average options-durations over last many quarters -starting from 2011.
In current quarter , 40% of SPX options have less than 24 hours to mature – an effect of change in behaviour post-pandemic or it is due to young gaming-crowd coming to the market and playing here for quick adrenaline-rush like any other sport or like in a casino!
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