Archive · 20 Aug 2025
Wall Street Traders Bet Against Tech Stocks with 'Disaster Puts'
Some people on Wall Street are worried that tech stocks might drop in value, like they did during the dot-com bubble.
They're buying special options called 'disaster puts' that protect them if stock prices fall a lot.
These options are for a fund that tracks the Nasdaq 100, a group of tech-heavy companies.
Some experts see similarities between the current market and the dot-com bubble.
Not everyone agrees; some think other types of stocks are a better bet.
Wall Street traders are buying 'disaster' put options, concerned about a tech stock sell-off.
These options are for the Invesco QQQ Trust Series 1 ETF, which tracks the Nasdaq 100.
Analysts are drawing parallels between current tech stock patterns and the dot-com bubble.
Data indicates a focus on the $515 put option for October contracts, near the 200-Day Moving Average.
Not all analysts agree, with some suggesting shorting small-cap stocks instead.
- Who
- Wall Street option traders and analysts.
- What
- Traders are purchasing 'disaster' put options, betting against tech stocks.
- When
- The trend has developed recently, amidst concerns of a tech stock sell-off.
- Where
- On Wall Street, focusing on the Nasdaq 100.
- Why
- Due to concerns about a potential tech stock market crash after a rally.
Concerned Traders
Less Concerned
Market Direction
Concerned Traders
Traders are worried about a major correction, possibly mirroring the dot-com bubble.
Less Concerned
Others believe these fears are overblown.
- ETF
- Invesco QQQ Trust Series 1
- Index Tracked
- Nasdaq 100
- Market Cap
- $360 billion+
- Put Option Price
- $515
- Closing Price (Tuesday)
- $569