Paradigm shift?

Paradigm shift - time to bring out the dot.com playbook?

Markets are violent. The mania in the option markets is huge and it is reminiscent of very special late 90's. The majority of the current retail trading crowd was not around during the 90's boom/bust. We are now seeing a similar market when it comes to extreme moves and heavy options trading. Heavy options trading back then was a big driver of some underlying moves (remember warrants?). Let's see how this plays out, but the right tail hedge continues to be the pain trade. If this market is "transforming" into what we saw in the late 90's, there is much more volatility (both ways) to expect.

Maybe we have not seen the real extreme yet...?