Nasdaq-S&P 500 volatility gap widens to widest since 2008 as tech conviction fades
By
Oliver Renick
4d ago· 5 min readenInsight
Summary
The article analyzes the widening gap between Nasdaq-100 and S&P 500 implied volatility, which has reached levels not seen since 2008. While earlier this year the spread was driven by extreme demand for call options on Big Tech winners, the current divergence is fueled by a pick-up in put demand as momentum in AI stocks slows. This shift suggests tech bulls are losing conviction, and the market is pricing in greater uncertainty for tech stocks relative to the broader market.
Source
bskyNasdaq-S&P 500 volatility gap widens to widest since 2008 as tech conviction fadescnbc.comKey quotes
· 3 pulledWhen you're in the middle of a hurricane, the price for umbrellas is going to be expensive, no matter which way the wind is blowing.
The spread between Nasdaq 100 1-month implied volatility at 28 and the S&P 500 below 16 is near record highs.
The pick-up in demand for puts aligns with slowing momentum in AI stocks that had been consistently rewarding speculators to the upside.
The pick-up in demand for puts aligns with slowing momentum in AI stocks that had been consistently rewarding speculators to the upside.
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