"Panic For Downside Hedges": Funds Crushed In Record Scramble For QQQ Puts

Last night we said that the tech/small cap "reversal" had arrived amid a clear rotation signal out of the frAIng pan and into the small-cap fire, signaled by record call buying in the Russell ETF, the IWM.

We concluded that "while the S&P may continue to go nowhere (and especially the equal-weighted S&P), prepare for a violent reverse rotation below the surface as the historic outperformance in tech, and crushing underperformance in small caps, is set go in the other direction."