Tech Bubble Fear Lures Investors to Hedge with Exotic Options

The tech-fueled stock rally is looking bubble-like to some investors, and they’re turning to exotic options that better protect against an eventual slump.

“After the start of the Iran conflict, the role of QIS increasingly shifted from return enhancement towards portfolio defence and macro adaptation,” said Adrien Géliot, Chief Executive Officer of Premialab.

“There was dispersion in performance within the QIS universe during the Iran shock window with the best systematic frameworks adapting faster than some discretionary processes as volatility, inflation expectations and cross-asset trends repriced.”

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