Options volume erupts in retail trading favorites as Robinhood, Tesla surge
Options traders are kicking off the historically worst month for stocks by piling on bullish bets on a handful of retail trading favorites.
Options Volume Surges in Retail Trading Favorites
Options traders are launching the historically worst month for equities with a wave of bullish bets on a select group of retail‑trading darlings known for sharp price moves and speculative interest. The activity centers on four names that dominate Thursday’s options market.
Above‑average Trading Volume
Stocks such as Robinhood Markets, Palantir Technologies, Tesla and SpaceX saw trading volume rise above normal levels on Thursday. Tesla and SpaceX ranked as the top‑most and fourth‑most traded equities by options volume, respectively. In each case, call contracts outnumbered puts by at least a two‑to‑one margin, indicating a broadly optimistic stance among market participants.
Low Volatility Fuels Calls
Traders appear to be exploiting a pronounced decline in implied volatility across both the broader S&P 500 and individual equities. The Cboe Volatility Index (VIX) has slipped beneath the 15‑point threshold, creating a low‑volatility backdrop that makes directional bets relatively inexpensive.
Robinhood Leads the Bull Run
Robinhood emerged as the most aggressively bullish of the quartet. By midday, call orders were more than double the volume of puts, and the ratio of calls bought to puts purchased hovered near three‑to‑one. At the same time, put selling eclipsed put buying, a pattern that underscores strong confidence in further upside. The platform’s stock, which had been lagging for much of the year, turned positive on the year after Thursday’s sharp rally and now sits within reach of a fresh year‑to‑date high.
Palantir Joins the Upside Wave
Palantir’s software shares also experienced a sizable climb, pushing the company into the top ten most‑traded single‑stock options with nearly twice the average daily volume. Market participants are purchasing twice as many calls as puts on Palantir, while the market for puts shows more selling than buying, reinforcing the bullish tilt.
Musk Mania Drives Tesla and Spacex Action
Investor enthusiasm around Elon Musk’s enterprises intensified ahead of the Tesla Cybercab unveiling in Austin, Texas. Both Tesla and SpaceX saw call buying at roughly double the level of put buying, accompanied by a pronounced excess of put sales. SpaceX’s price action added drama by reclaiming the pivotal $150 level—a threshold it has not closed above since early July. The stock’s 30‑day implied volatility now sits in the fourth percentile, roughly half of its historical average since the company’s public debut on June 12.
Market Commentary
“Bitcoin ripping is great for Robinhood and Snowflake was the catalyst for Palantir,” said Charles Moon, a momentum‑trading specialist at Prosper Trading Academy. “Retail’s getting aggressive because all they need is a reason to be. It’s a good sign.” Moon’s observation highlights how broader market narratives, from cryptocurrency rallies to tech earnings, are feeding the current surge in options activity across these retail‑focused symbols.
Source: CNBC · 2026-09-03