'FOMO Insurance' Drives Options Buying Spree as Stocks Rally On

News August 14, 2026 at 01:22 PM
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What You Need To Know

  • Investors are buying less downside protection and piling into contracts that pay off if the market continues to rally.
  • For at least 170 stocks in S&P 500, a measure of demand for upside calls — which pay off if the shares keep rising — has outstripped demand for options on markets staying flat by the most since at least 2016, according to Citadel Securities.
  • That’s a break from the typical pattern.

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