Even though just five stocks, led by Apple and Microsoft, account for 24% of the index, the concentration helps stabilize the risk of investing over time.
In four of the last five times a similar level of “retail capitulation” occurred, the S&P 500 Index rose more than average in the subsequent one-, three-, and six-month periods.
The platform, first launched in April 2022, now features digital client onboarding, an updated dashboard and the ability to exclude more individual stocks.
Retail options traders are gambling, driven by sentiment and narratives. That often leads to future price declines on the overbought stocks, research shows.