Pure speculation can drive markets higher. As you get people pouring into equities but also options. As investors buy long calls, that may force dealers (who are short those calls) to purchase the underlying. This is a gamma trap.
Record retail account openings – CNBC
Consider the video of this guy below. He used to be focused strictly on sports, but with no more sports he switched to stocks. He has millions of followers.
If anything I just did was illegal just know that I didn’t know what I was doing and therefore can’t be held responsible. pic.twitter.com/im0iuaT6ia
— Dave Portnoy (@stoolpresidente) June 1, 2020
I am being asked about a tremendous number of speculative stocks. That's often not a good sign. In fact, the ratio of spec v. investment is really pretty off-the-charts….
— Jim Cramer (@jimcramer) June 2, 2020
