Big Tech’s Furious Rally Forces Options Pros to Line Up Hedges

Big Tech has led the furious rebound in US stocks from the tailspin that followed President Donald Trump’s sweeping April 2 tariff edict. Now options traders are signaling that they see the pricey cohort as especially vulnerable to another round of trade war-driven volatility.

The cost of protecting against a correction in the Invesco QQQ Trust Series 1 exchange-traded fund, which tracks the tech-heavy Nasdaq 100 Index, is climbing with less than a month to go until Trump’s 90-day pause on reciprocal tariffs potentially ends. On Friday, the relative price of hedging against a 10% decline in the ETF, compared with a similar rally, hit its highest level since early April.