This risky strategy can make retail investors vulnerable.

Keith Gill denied to Congress that he used social media to manipulate GameStop stock and deceive investors.

In February 2021, DeepF------Value, also known as Roaring Kitty on YouTube, testified before the U.S. House of Representatives’ Committee on Financial Services. He gained notoriety online and is believed to have played a role in inspiring the GameStop short squeeze. Gill would frequently share screenshots of his investment portfolio, highlighting his profits from his GameStop position.

What are called options contracts made up a significant portion of Gill's portfolio.

A strategy that allows a trader to purchase or sell a security is an investment option.

Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group, advised that options should be viewed as an insurance product.

In recent years, individual investors have increasingly turned to options trading through brokerage platforms like Robinhood.

Twenty years ago, trading an option required calling a broker on the phone and paying a high commission. Now, options markets are more accessible, and their use has grown alongside this ease of access.

Options can be a useful tool for managing risk, but they can also be risky.

According to Joshua Mitts, an associate professor of law at Columbia Law School, options are a type of bet where you can potentially lose everything. Unlike investing in shares of stock, where you may experience a decline in portfolio value of 5% or 10%, with options trading, you can completely lose all your money.

JJ Kinahan, chief market strategist at TD Ameritrade, stated that options are not inherently bad, just like fire is a great tool. However, if one doesn't know how to use them properly, the outcome can be disastrous.

The video explains why options activity is increasing and why the investment strategy can be dangerous.