Options Traders Brace for Big Tech Selloff With ‘Disaster’ Puts

Options traders are increasingly nervous about a plunge in technology stocks in the coming weeks and are grabbing insurance to protect themselves from a wipeout.

The tech-heavy Nasdaq 100 Index is up almost 40% since its early April plunge triggered by President Donald Trump’s sweeping tariffs. The rally has been propelled by big tech, with the Bloomberg Magnificent 7 Index — which contains the likes of Nvidia Corp., Meta Platforms Inc. and Microsoft Corp. — soaring nearly 50% since its April 8 bottom.