Tech Rally Chasers Make Calls Priciest Since 2007 Next to S&P

A three-month rally in the Nasdaq 100 Index of approximately 30% has driven call option prices to their highest levels relative to S&P 500 options since 2007, according to market data. Investors are purchasing call options, which give them the right to buy stocks at a set price, at elevated rates. The cost differential between Nasdaq 100 calls and S&P 500 calls reflects expectations among options traders for continued gains in technology stocks. Call option premiums are determined by factors including underlying price volatility, time to expiration, and trader positioning.

Next story