Goldman Sachs Put-Call Skew Hits Zero: History Shows Big Tech Rallies Follow
A Goldman Sachs indicator measuring put-call skew for Nasdaq-100 stocks has hit zero, the fifth time in two decades. This rare reading suggests investors are paying roughly equal prices for downside protection and upside bets, signaling low fear or complacency rather than market tops. The previous four instances occurred during strong AI-driven tech rallies, not at peaks. The indicator dropped 0.25 points since March 2026, one of the largest six-month declines on record. Nasdaq-100 implied volatility also fell sharply as investors continue to favor technology stocks due to resilient earnings and growth expectations from mega-cap firms. The put-call skew has historically preceded strong tech rallies following AI advancements. Goldman Sachs' long-term average for this indicator is about 0.11, making zero an unusually low reading. While the gauge does not predict market direction, it shows investors are pricing in minimal downside risk during a period of continued technology leadership.
Topics: AI-driven rallies Goldman Sachs Nasdaq-100 put-call skew volatility decline