Option traders price in ‘disaster’ as Iran tensions rise, with a rebound play on Big Tech suggested
As Iran tensions intensify, U.S. equity options traders are pricing a potential crash, with demand for out-of-the-money puts on Big Tech and Nasdaq-100 ETFs rising. Nomura’s Charlie McElligott says there’s an asymmetric rebound opportunity: selling puts and buying calls could profit if markets bounce, even as the S&P 500 stays near record highs and volatility (VIX) remains around the mid-20s.
