Meme Trading Dominates Options Market, Hits 40% Volume
November 16, 2025Options trading activity is increasingly driven by meme stocks, with roughly 40% of total options volume on Wednesday attributed to a small group of shares fueled by intense internet hype and heavily shorted positions. This trend highlights a market detached from fundamental financial principles.
Beyond Meat (BYND) and Krispy Kreme (DNUT) have been at the forefront of this phenomenon. These companies, frequently targeted by Reddit investors despite reporting losses, have become focal points for retail interest.
Trading volumes in options for these stocks have surged dramatically. BYND saw approximately 3.3 million contracts traded, nearly 9.4 times its average 20-day volume. DNUT’s options volume reached an astonishing 38 times typical activity.
The low share prices, below $5 for both companies, make them accessible for margin accounts, prompting retail investors to use options to control a large number of shares with limited capital. This allows them to mimic high-risk strategies.
For example, the most traded BYND contract was the October $3 put option, with 147,000 contracts changing hands, representing a bet that the stock would decline significantly. Conversely, a $4 call option saw 104,000 contracts traded, a wager on a substantial price increase.
One factor contributing to this trend is the difficulty hedge funds face in shorting these heavily retail-invested stocks. As retail investors drive prices higher, funds may be forced to cover their short positions, exacerbating the rally.
This activity is largely disconnected from the underlying companies’ performance. Beyond Meat continues to report losses, while Krispy Kreme struggles with weak margins and debt. The key driver is the online narrative and social media buzz, mirroring the GameStop (GME) and AMC Entertainment (AMC) surge in 2021.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.
