If Everything's So Awesome, Why Are Investors Surging Into Tech-Stock Hedges?

Tyler Durden's picture

Tech stocks are up once again - for the 5th day in a row, the longest streak since May - as the business media celebrates FANG's rennaissance (again)...


There's just one thing that is 'odd' about this rally, traders are piling into downside hedges on every uptick in prices...

As Bloomberg notes, options markets suggest a lack of confidence in the rally.

The cost of bearish over bullish contracts in the $13 billion Vanguard Information Technology exchange-traded fund rose to the highest level since late May, even as the fund pared most of its losses in the slump following an all-time high reached in June.

Gaining 20 percent this year, S&P 500 technology companies trade at 17.7 times projected earnings, compared with a five-year average of 15.

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Kristian's picture

But how long do I need to see the Kathy Griffin face in the sponsored stories..

knukles's picture

Until you make feverish mad love to her for hours on end every single day for the rest of your life.
Lucky you

Poor Barack drew the Mooch

Bill of Rights's picture

Gross... I'd rather beat off to Hillery in a bathing suit...

Scrimpy's picture

JUICE Short-Squeezing? Lot's of Goyim to be fleeced....

Nobody For President's picture

knucks - that is just ick. I mean an ickie-poo curse of the first order.

ick, ick, ick.

For shame!

GUS100CORRINA's picture

If Everything's So Awesome, Why Are Investors Surging Into Tech-Stock Hedges?

My response: Because everyone knows that the CHANNELS ARE STUFFED FULL WITH PRODUCT in order to continue to report FANTASTIC RESULTS.

Everyone knows it! So who is buying??? Answer: Central Banks using FIAT currency (Other people's money).

DontFollowMyAdviceImaDummy's picture

The answer yee seeks is THE FED DOESN'T KNOW WTF THEY'RE DOING and hence will do something monumentally stupid probably sooner than later... tick tock to the pop!

buzzsaw99's picture

degenerate fools wasting their money would be my guess.

Dragon HAwk's picture

Just a few more pennies   before that steam roller hits.

Silver Savior's picture

I am more like surging into precious metals and crypto. Bye bye!

Bill of Rights's picture

Why? PM have gone no where but down... sure insurance and all big deal.

Silver Savior's picture

The difference is I am holding it for 30 plus years. I also have done lots of research and I do not want to hang on to fiat currency.

Pms do not go anywhere. It's the value of fiat going up.or down. In many currencies PM's are up.

Iconoclast421's picture

Those hedges will disappear into nothingness once a bit more SNB money flows in to push it over the all time high marker. Then all those hedges will instantly transform into fuel for a faceripper rally.

Cordeezy's picture

because yeah it isn't awesome forever?





jamesmmu's picture

make or break this earning season

Rough-Trader's picture

ALL Muslims around the world believe everything should be blamed on the Jews.
They believe that Israel created Isis.
Most on zerohedge believe this too.
Are these uneducated Muslims living in tin-pot states intelligent?
No! Therefore are people here intelligent? No!
Because you believe the same Muslim bedtime stories that Muslims have been doing since 640AD, I.e. Jews are to blame for everything. Stupid Americans on this site actually believe this ancient shit?
Yes unbelievable so, and they think it's intelligent to believe an Islamic bedtime story that has been in circulation for 1400 years! Morons.

Too-Big-to-Bail's picture

It goes even deeper than that -- almost all Olympic and professional  athletes win their medals and break world records with cheating by being secretly on the Jews

mary mary's picture

USA Supreme Court:  6 Catholics, 3 Jews.  0 Protestants, Muslims, Buddhists, Hindus, Shintos, Rastafarians, Scientologists, Taoists, Confucians, Native American Religionists, Greek Orthodox, Russian Orthodox, Agnostics, and Atheists.

When the people in your government are giving away everything you own, taxing everything you produce, and regulating everything you do, you don't blame people on the other side of the planet.  You blame the people in your government.

Too-Big-to-Bail's picture

In every song, there is a part in the song where the chorus keeps repeating and you get the feeling the song is about to start fading out soon

mary mary's picture

"tech etf options skew"