What's Driving Options Volatility & "Mag 10," Crypto Trading Trends

• Options volume hit a record in 2025, averaging 61 million contracts/year, and is up another 15% in early 2026 to 67 million contracts/year.
• Retail investors account for approximately half of the options volume, while 0DTE trading makes up nearly two-thirds of activity in major products like SPX.
• Increased institutional activity is observed, with options used to adjust risk exposure in highly concentrated 'Mag 10' positions (e.g., Tesla, Nvidia, Apple) without incurring significant tax hits.
• The efficiency and low slippage of short-dated options make them attractive for both buyers and sellers, enabling quick tactical plays on market movements.
• Bitcoin ETFs, particularly IBIT, are seeing significant options trading due to high volatility and increased adoption, offering opportunities for leveraged plays.

The options market experienced record volume in 2025, with continued growth into January 2026, driven by strong retail engagement and the rise of 0DTE (zero days to expiration) options. This surge in activity is attributed to both retail and institutional investors utilizing options for tactical decisions and risk management, especially in highly appreciated 'Mag 10' stocks and volatile assets like Bitcoin ETFs.