Options Market Signals Investor Angst Ahead of Big Tech Earnings

Stock investors don’t need to look hard to find warnings that the market looks frothy after a 36% surge from April’s nadir pushed valuations to levels associated with prior periods of exuberance.

For much of the past two months, relative calm in the derivatives market has served as a handy retort to those worries, with Cboe’s Volatility Index clocking in well below its long-term average. Even under the hood, at the single-stock level, moves have been uncorrelated to a degree last seen in February – a sign of health to most market watchers.