The Nasdaq 100 options market shows a rare inversion where investors prioritize upside bets over downside protection. By late May 2026, the put-to-call implied volatility spread dropped to approximately 4%, down from 15.5% in early 2025.
By August 2026, the 1-month put-to-call skew reached 1.15 points, marking the lowest level since April 2025. On September 15, the 25-delta call implied volatility for QQQ reached 22.8%, while put implied volatility stood at 16.7%.
This resulted in an inverted skew of negative 6.1 percentage points. Goldman Sachs analysts identified this trend in early June 2026, noting that downside protection became inexpensive amid an AI-driven market rally.
Historical data shows similar dynamics during the 2020-2021 bull market. In 2022, the Nasdaq 100 experienced a decline of approximately 33% from peak to trough, leaving many investors underhedged during the downturn.
