Skip to content
Subscriber Only

Traders Were Bidding Up Protection in Nasdaq ETF Ahead of Rout

  • Outstanding puts on Nasdaq ETF reached highest in two years
  • Tech hedges suggests investors aren’t ignoring market risks

For all the talk of whales, froth and call option mania, one prudent group of tech investors loaded up on protection ahead of the selloff.

Last week, the number of outstanding bearish contracts on the $137 billion Invesco QQQ Trust ETF was near the highest in two years. A similar demand for protection played out in the Nasdaq 100 Index, where put open interest has been rising at a faster clip than for calls.