Core Viewpoint - Technology stocks are experiencing significant gains, leading some investors to hedge against potential losses as momentum may be waning [1][2]. Group 1: Market Performance - The Nasdaq 100 Index has seen a rise for five consecutive months, with only one down day in September, driven by optimism around artificial intelligence and anticipated Federal Reserve interest-rate cuts [2]. - Oracle Inc. made headlines with a 36% increase, marking its largest gain since 1992 [2]. Group 2: Investor Sentiment - Investors are increasingly purchasing put options to protect gains, with the cost of hedging against a 10% drop in the Invesco QQQ Trust ETF reaching its highest level since 2022 [3][5]. - The put-to-call skew for QQQ has been higher only 8% of the time in recent data, indicating a growing unease among investors [5]. Group 3: Volatility and Hedging - The current market conditions show high stock prices and low volatility, prompting discussions about the necessity of hedging, especially as September is typically a weaker month [4]. - The demand for call options remains subdued, while the put-to-call skew is increasing, reflecting concerns about a potential market crash [6]. Group 4: Strategic Insights - Hedging strategies are being implemented to safeguard long equity portfolios from possible declines, although the actual cost of downside protection is lower than during previous periods of uncertainty, such as the trade-war peak in April [7].