Analysis: Retail investors are dominating the US stock options market, with large-scale dip buying observed last week

ChainCatcher News,KobeissiLetter released an analysis of the US stock market, stating that in the third quarter of 2025, the total quarterly options trading volume surpassed 3.5 billion contracts for the first time, and the total options contract trading volume has doubled over the past five years. Previously, retail investor participation in the US stock market reached a record 55% last quarter, meaning that retail investors now account for the majority of market trading. Since 2023, this percentage has increased by 10 percentage points, compared to a five-year average of about 49%.

Meanwhile, during last week's market pullback, retail capital flows saw one of the largest dip-buying events ever, with retail investors now dominating the US stock options market.