A rare Goldman Sachs options signal shows Nasdaq-100 investors are paying minimal premiums for downside protection, a pattern historically linked to continued momentum in tech leaders like Nvidia and Microsoft.
The Nasdaq-100 put-call skew hitting zero has historically preceded strong tech rallies, indicating low investor fear and potential for further gains.
Nvidia is mentioned as a major force behind the Nasdaq-100 rally, and the low put-call skew historically preceded further tech gains.
Microsoft is highlighted as a leader in the tech rally, and the rare options signal suggests continued upside for mega-cap tech stocks.
Invesco QQQ Trust provides liquid exposure to the Nasdaq-100, which historically rallied after similar low put-call skew readings.
Goldman Sachs reports the Nasdaq-100 put-call skew has hit zero for only the fifth time in two decades. This rare indicator of investor confidence suggests that, historically, such periods of extreme calm in options pricing have preceded further gains in tech-heavy indices rather than signaling a market top.
A zero reading indicates that the cost of downside protection (puts) is equal to the cost of upside exposure (calls), suggesting investors are currently showing little fear of a market decline.