Here is an enormous motive why inventory markets are so robust

This chart really gives away the game.

Option trading started to go mainstreet after covid and it’s gone fully parabolic in the last few months. Yes, it’s a worrisome sign for the bulls but there is also a secular story here of option buying that’s expanding multiples and exaggerating the market moves of hot stocks.

I’d argue this chart matters more than an chart of P/Es, at least in the short term.

This article was written by Adam Button at investinglive.com.