Risk appetite has arguably never been stronger: The 10-day average of notional options volume on S&P 500 stocks is up ~$530 billion, the highest in at least 2 years. This measures the total Dollar value of options contracts traded on individual S&P 500 stocks, reflecting the amount of money flowing into single-stock bets. Volumes have DOUBLED since October 2024. By comparison, the 2024-2025 average was ~$350 billion. Meanwhile, the average daily trading volume of the S&P 500 ETF, VOO, has exceeded $1 trillion for the first time, quadrupling since 2020. Risk appetite is now breaking records almost every week.(The Kobeissi Letter)