Today, we’re thrilled to sit down with Kofi Ndaikate, a leading expert in the Fintech space with deep knowledge of blockchain, cryptocurrency, and the evolving landscape of financial markets. With retail traders making waves in options trading, driving record volumes, and reshaping market dynamics, Kofi is here to break down the forces behind this transformation. In our conversation, we’ll explore the surge of retail participation, the impact of commission-free platforms, the role of online communities, and the rise of innovative products like zero-day-to-expiration options, along with their broader implications for market stability and opportunity.
Can you walk us through what’s fueling the huge spike in options trading volumes over the past few years?
Absolutely. The explosion in options trading, with over 12 million contracts executed in 2024 alone, is largely driven by retail investors stepping into a space that was once the domain of institutional players. A big factor is accessibility—technology and lower barriers to entry have empowered everyday traders. Retail investors are contributing a significant chunk of this growth, often outpacing institutional activity in certain segments like short-dated contracts. The data speaks for itself: we’ve already seen over 6 million contracts traded by mid-2025, showing this trend isn’t slowing down.
How has the shift to commission-free trading influenced retail investors’ dive into options?
It’s been a game-changer. When platforms introduced zero-commission trades back in 2013, they opened the door for a younger, tech-savvy crowd to experiment with complex instruments like options without the burden of fees. Later, when major brokers followed suit around 2019, it created a snowball effect. Suddenly, millions of retail traders who might have hesitated due to cost could jump in, test strategies, and learn by doing. This democratization of access has been a cornerstone of the retail boom in options markets.
What impact has the rise of financial education through digital platforms had on this trend?
It’s been transformative. Platforms like YouTube, Reddit, and Discord have built communities where self-taught traders share knowledge on everything from basic chart analysis to advanced derivatives strategies. Unlike traditional financial education, which often felt inaccessible, these spaces are interactive and relatable. They’ve created a generation of traders who are not just curious but eager to apply what they learn in real markets, often with a level of confidence—or sometimes overconfidence—that drives their engagement with options.
Can you explain how online communities have shaped major market events in recent years?
A prime example is the short squeezes we saw with certain stocks during the pandemic. Retail traders used social media to organize and target heavily shorted stocks, buying up call options en masse. Their coordinated efforts created massive price swings that caught institutions off guard. What made this unique compared to past retail-driven events, like certain forex trends decades ago, was the scale and speed enabled by digital platforms. Options became a weapon of choice for these traders to amplify their impact on underlying markets.
What’s behind the growing fascination with zero-day-to-expiration options among retail traders?
Zero-day-to-expiration, or 0DTE, options have become hugely popular because they offer quick, high-stakes opportunities. When daily expirations were introduced in 2022, it changed the game—retail traders could now make rapid bets on short-term market moves. With 0DTE trades accounting for about 43% of daily options volume, it shows how retail investors are drawn to fast-paced, speculative strategies. It reflects a mindset of immediacy and risk-taking that’s become a hallmark of this new wave of traders.
In what ways has this retail surge reshaped the broader options market?
The impact is twofold. On the positive side, the influx of retail activity has boosted liquidity, especially in short-term contracts, which helps with price discovery and narrows spreads. However, it’s also introduced more volatility. Retail traders often operate with diverse motivations and unconventional approaches, which can throw off the predictive models institutions rely on. This unpredictability creates both challenges and opportunities for the market as a whole.
What do you make of the predictable patterns in retail trading behavior, like the regular spikes in trading activity?
It’s fascinating. Data shows that retail trading, especially in 0DTE options, often spikes at specific times during the day, likely tied to automated strategies or just habitual behavior around key market hours. While these actions aren’t coordinated, they create patterns that sophisticated players can analyze and capitalize on. It’s a reminder that even in a seemingly chaotic retail-driven market, there are still exploitable trends if you have the right tools and insights.
What’s your forecast for the future of retail participation in options trading?
I think we’re just at the beginning of this shift. As technology continues to evolve and access becomes even easier, retail participation will likely grow further, especially with innovations in trading products and educational resources. However, I also foresee tighter regulations as markets grapple with the volatility retail traders can introduce. The balance between empowering individual investors and maintaining market stability will be the key challenge—and opportunity—in the years ahead.
