How 71 Million Option Contracts Prove We're Trading in a Bubble

(And Where the Real Risk Hides)

Author

Don Kaufman
September 23, 2025

Don Kaufman here. 

After +20 years in this business, I know which traders survive market chaos. And which ones get their heads ripped off.

Yesterday, the S&P moved a whopping 30 points. And 71 million option contracts traded. 

Last Thursday and Friday?

 84 million and 83 million respectively. Those are the three highest option volume days on record.

For perspective: we moved 30 points and traded more options than during most crash days.

This isn't normal market activity. 

Caterpillar might be really prime for a nice in-out spread… completely parabolic… I priced the Oct 29 expiry, 31 days left. Did the $485/$480 put spread for about $2.35.  This one struck me as an intraday opportunity, but I like the in-out spread even better.