Retail AI put buying nearly doubles since April
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- Vanda Research data shows put buying on the top 12 retail-favored stocks has nearly doubled since April versus Q1, rising to 110% from about 26% of net cash buying — even as outright stock purchases have declined.
- Since mid-April, bullish tech ETF buying has fallen roughly 50%, outpacing the ~35% decline in bearish ETF buying, per Vanda's global equity strategist Kaidi Meng.
- Charles Schwab's STAX index climbed to 59.80 in July from 59.12 in June — its highest level since January 2022 — with the brokerage seeing more than two buyers for every seller.
- Nvidia, previously a regular in STAX's top five names, was absent from those rankings in July even as Schwab clients sold puts on Nvidia, Micron and Sandisk to capture elevated premiums.
- Schwab head trading and derivatives strategist Joe Mazzola said investors sold puts on AI-linked names while buying lower-cost Invesco QQQ Trust puts to hedge broader tech exposure during the week of Aug. 7.
- Fidelity's Bryan Koplin noted continued interest in leveraged and inverse ETFs, used both for hedging and as directional bets by active traders evaluating expected market movements.
Why it matters: Retail investors are shifting from 'buy-the-dip' conviction to a split stance: selling premium-rich puts on individual AI names like Nvidia and Micron while buying cheaper QQQ puts as portfolio insurance. The 50% drop in bullish tech ETF buying outpacing the 35% decline in bearish ETF buying suggests overall positioning is shrinking — a marked contrast to prior years when retail bought every dip without question.
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