A divergence between major volatility measures is raising red flags among sophisticated investors, even as traders embrace the ongoing bull market.
While the VIX, Wall Street's traditional measure of market fear, remains relatively tame, volatility in Nasdaq-100 options has surged, signaling that savvy investors are hedging their positions against potential losses in technology stocks.
The disparity between the two volatility gauges suggests that despite widespread optimism about equities, some of the smartest money on Wall Street is preparing for downside risk.
