The share of S&P 500 names moving more than 10% in a single day has increased, and high dispersion and low implied correlation suggest stocks are increasingly trading on their own fundamentals, see charts below. At the same time, options activity remains extremely elevated, consistent with heavy retail speculation and leverage-like exposure. Larger idiosyncratic moves and outsized options participation leave the market structure more fragile and more vulnerable to an abrupt, outsized move.
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