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

Options traders are bracing for a potential selloff in big tech stocks in the near future. They are purchasing "disaster" put options, which serve as insurance against a significant decline in the market. This move suggests that traders are anticipating a substantial correction in the technology sector, possibly driven by factors such as rising interest rates, valuation concerns, or other economic uncertainties. The purchase of these put options indicates that traders are concerned about the vulnerability of tech stocks and are seeking to hedge their positions. The article notes that the demand for these protective options has been increasing, reflecting the growing apprehension among market participants about the future performance of the tech industry. While the article does not provide specific details about the underlying reasons for this concern, it highlights the cautious sentiment among options traders and their efforts to mitigate the potential risks associated with a tech selloff.