The real reason options are pushing meme stocks into the stratosphere ...Middle East

Quartz - Economy
The real reason options are pushing meme stocks into the stratosphere
source : Quartz ( Middle East ) () 3
We are only just beginning to understand the ramifications of the retail trading boom.Take Robinhood, which had a lackluster debut. Its shares dropped 8% on their first day of public trading. But on Aug. 4, just a few days after the IPO, options contracts linked to the company’s stock became available, and the shares took off like a rocket.As many have speculated, the options did play a role in the roller coaster rally that followed—but probably not for the reason some traders think, especially if they haven’t accounted for changes in how trading firms hedge meme stocks.Read the rest of this story on qz.com. Become a member to get unlimited access to Quartz’s journalism.

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