Data &
Technology
Research
Reports
Report Solutions
Reports Library
Actionable
Strategies
Free
Resources
Simple Backtest Calculator
Simple Seasonality Calculator
The Kelly Criterion Calculator
Sentiment Geo Map
Public Research Reports
Free Webinar
Pricing
Company
About
Meet Our Team
In the News
Testimonials
Client Success Stories
Contact
Log inLoginSign up
< BACK TO ALL REPORTS

A tiny market with huge volume

Jason Goepfert
2021-01-14
In December, volume in penny stocks exceeded 1 trillion shares, several times that of the major exchanges.

There is a feeding frenzy out there, and the devouring horde is roaming toward more and more speculative outlets.

It started last June with a spike in options trading, specifically calls. It reached a fever peak in late August, pulled back in September as losses piled up, then spiked again in December and continues to this day. Over the past 5 days, U.S. options exchanges have executed an average of nearly 27 million call contracts, a record high. As a result, potential selling pressure from dealers has also spiked to a record. 

Even while the TikTok crowd still hasn't become bored with options, they've branched out to other avenues. That has been readily apparent over the past few weeks. As Bloomberg notes, that includes penny stocks. When January's figures are released, it's likely going to show near-record levels of volume in these lottery tickets

Even in December, this activity was starting to spike. For the first time in a decade, more than 1 trillion shares traded. Yeah, that's trillion with a "t."

Over the counter penny stock volume

For comparison's sake, that's nearly 50 times the volume traded among securities in the Nasdaq Composite index.


What else we're looking at

  • What happens after other big spikes in penny stock share volume since 1995
  • Looking at penny stock volume relative to total Nasdaq volume and $ amount traded
  • There have been 2 other times call volume and Gamma Exposure both skyrocketed
  • Think tech is in a bubble? We show a low-risk way to express that view with options on NFLX
  • What it means when there is an internal surge among emerging market stocks
  • Most small business owners now expect deteriorating conditions, but it doesn't mean what you think

For immediate access to all the research with no obligation, sign up for a 30-day free trial


Stat Box

On Tuesday, options traders executed over 800,000 put contracts on 10-year Treasury notes. That's only the 5th time in history that more than 800,000 bearish bets were traded on the same day.


Sentiment from other perspectives

A levitating market has emboldened investors to push more than $44 billion into equity funds in a single week, setting an all-time record. Source: Visual Capitalist

weekly equity fund flow

These fund flows are separate from the money moving into individual stocks. And many of those in recent weeks have been among the most speculative. Source: Bloomberg

health care penny stocks

And what does Wall Street do when appetite is so voracious. Why, they feed the duck, of course. Source: Ed Yardeni via David Schawel

ipo and secondary issuance

DATA &
TECHnologies
IndicatorEdge
‍
BackTestEdge
‍
Other Tools
‍
DataEdge API
RESEARCH
reports
Research Solution
‍
Reports Library
‍
actionable
Strategies
Trading Strategies
‍
Smart Stock Scanner
‍
FREE
RESOUrCES
Simple Backtest
Calculator
Simple Seasonality
Calculator
The Kelly Criterion
Calculator
Sentiment Geo Map
‍
Public Research Reports
‍
Free Webinar
COMPANY
‍
About
‍
Meet our Team
‍
In the News
‍
Testimonials
‍
Client Success Stories
Pricing
Bundle pricing
‍
Announcements
‍
FAQ
© 2024 Sundial Capital Research Inc. All rights reserved.
Setsail Marketing
TermsPrivacyAffiliate Program
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.