Retail Investors Double Put Buying Since April, Cut Long Exposure With Inverse ETFs
Updated
Updated · CNBC · Aug 19
Retail Investors Double Put Buying Since April, Cut Long Exposure With Inverse ETFs
3 articles · Updated · CNBC · Aug 19
Summary
Put buying on the 12 most retail-favored stocks has nearly doubled since April versus the first quarter, rising to 110% of net cash buying from about 26% as outright stock purchases declined.
Vanda said the shift shows retail traders still pursuing AI names but hedging more aggressively with protective puts and inverse ETFs instead of reflexively buying every dip.
Bullish and bearish tech ETF buying has both fallen since mid-April, with bullish activity down about 50% and bearish flows down roughly 35%, signaling reduced outright exposure rather than a broad bearish turn.
Schwab's STAX rose to 59.80 in July from 59.12 in June—its highest since January 2022—as clients remained net buyers by more than 2-to-1, while also adding some QQQ puts to hedge broader tech exposure.
Fidelity said leveraged and inverse ETFs can serve as hedges or directional bets, underscoring that retail caution heading into fall still sits alongside appetite for tactical risk in AI-linked trades.
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Is the market treating Meta’s legal fight like a temporary selloff, while missing a California precedent that could reshape social media design industry-wide?
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