Is there any evidence / research papers regarding the relationship between the number of retail investors (or higher volume contribution of mom and pop traders) and implied volatility in the market?
I thought more retail option traders flowing into the market generally lead to higher iv because...
Crypto options on deribit have had a wide range of IV levels over the course of recent crypto bull / bear runs. Aa far as crypto implied vo is concerned I personally think 70~80% is never a rich figure as it very often soars up above 100 even by very fleeting issues such as elon's twitter...