How Index Options Signal Market Shifts: Insights from Nasdaq

Kevin Davitt, Head of Index Options Content at Nasdaq, joins PreMarket Playbook to break down the unusual market dynamics behind the Nasdaq 100's two-month rally — and why he says downside protection is screening cheap relative to history. Kevin unpacks the extreme call skew and lack of put demand driving the current melt-up, the parallels to the July/August 2024 volatility setup, and what narrow leadership and negative breadth could be signaling. He also walks through how the options market is pricing Broadcom's upcoming earnings (a ~9.5% implied move) and how traders can use options to structure asymmetric exposure in a market like this. 🔗https://bit.ly/4o628pO ⏱️ Timestamps 00:00 — Intro 00:24 — Kevin's role at Nasdaq & the rise of NDX options 01:34 — Call skew, put demand & the two-month rally 03:37 — Are options flows fueling the melt-up? 05:31 — Signals to watch for a volatility regime shift 05:53 — The 2024 carry unwind parallels 08:04 — Rotation vs. top-led de-risking 09:49 — Broadcom earnings & the at-the-money straddle 12:01 — Where to learn more about index options 👉 Subscribe for daily market analysis, trade ideas, and expert interviews every morning on PreMarket Playbook. 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 📲 Follow us on socials @benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes. #Nasdaq #Options #StockMarket