As Tech Stocks Rebound, High Hedging Costs Indicate Skepticism
- Cboe gauge tracking Nasdaq 100 Index remains above average
- Investors more nervous about Nvidia downside, Sosnick says
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The recent rebound in US tech stocks isn’t convincing options traders just yet.
While the shares have led market gains since a meltdown earlier this month, the cost of contracts hedging against volatility in the largest exchange-traded fund tracking the Nasdaq 100 Index remains high relative to contracts on the SPDR S&P 500 ETF Trust.