Brent Kochuba on tastylive: AI stock options have reset from record dispersion, and the positioning no longer rewards shorting tech.
call skew
Broadcom is the Next AI Focused Catalyst
Fundamentals Broadcom (AVGO) is the most important remaining AI hardware earnings report of the week, providing investors with a different read on AI spending compared to Nvidia. Nvidia tells us about demand for general-purpose GPUs, while Broadcom tells us about custom AI accelerators, networking, hyperscaler silicon programs, and the increasingly competitive threat to Nvidia from […]
Passing the Baton: From Semis to Software?
The AI trade has been the story of the first half of 2026, and semiconductors have been the main characters. The sector now accounts for roughly 20% of the entire S&P 500 — a historically high concentration. As we covered in our previous newsletter, any meaningful profit-taking in this area brings up the important question […]
June Catalysts Threaten a Volatility Spasm — How Are Traders Positioning?
The S&P 500 has posted fresh record highs for the ninth straight week. Tech and semiconductor earnings fueled much of the recent surge, with SNOW climbing 52%, DELL gaining 57%, and MU surging 28% within one week. As we move into June, stretched positioning now meets a cluster of major catalysts. Three upcoming events will […]
Record Highs and Thinning Hedges
Last week, the S&P 500 closed its eighth straight weekly gain — the longest streak since 2023. As the rally continues to achieve record highs, underlying options positioning has evolved meaningfully since March. Most importantly, the market has quietly shed much of the protective hedging that was in place just two months ago. A dense […]
The Options Market Trapdoor
Over the past week, the topic of volatility has returned to the forefront. While the market has been largely range-bound, underlying support remains tenuous. Simultaneously, traders have begun more actively paying for downside protection. Given the backdrop of flaring geopolitical conflict, we see assymetric downside risk forming as trader uncertainty and negative gamma threaten to unlock the […]