Many using meme stock options when they can't use margins, says Mike Khouw

Stock Performance & Volatility - Beyond Meat's stock experienced extreme volatility, with intraday swings of +112% and -30%, ultimately closing near flat [1] - The stock has increased more than 500% (quintupled) since the previous Monday, driven by its inclusion in a new meme ETF [1] - The meme ETF, since its inception on October 8th, is down over 9% [1] Meme Stock Activity - Several meme stocks are experiencing increased activity in the options market [3] - Other top holdings in the meme ETF include Navatas Semiconductor, Critical Metals Corp, Open Door, QuantumScape and Plug Power [2] Options Trading - Donut and Crispy Cream saw put volume trade at approximately 70 times their average daily volume [3] - Beyond Meat's put volume traded over 11 times its average daily volume [3] - Sweet Greens' call volume traded almost three times its average daily volume [3] - Clover Health's call volume traded almost two times its average daily volume [4] - Over 33 million (3.3% million) Beyond Meat contracts traded, with buyers focusing on October 24th weekly, $3 strike puts [4] - A block of 5,000 of those puts traded for $0.26, indicating a bearish outlook [4] Speculation & Leverage - Options are being used to gain leverage, especially for stocks priced under $5, where margin is limited [5] - The activity is largely driven by speculation [5]