Vote with real gold and silver! The options market bets that the trend of AI stock market in the US is far from over.

Is the upward trend of artificial intelligence stocks about to end? Options traders have made a judgment on this, and their answer is a clear no, at least not in the short term. Noticeably, this judgment is especially evident in the derivatives market. The ratio of open bullish options contracts to bearish options contracts on the seven tech giants' stocks has reached its highest level since March 2023, indicating that traders are preparing for further price increases. These data may help alleviate market concerns. Currently, as more and more strategists express cautious views on the prospects of tech stocks, investors are beginning to worry whether the tech stock rally that has propelled the S&P 500 index up 27% since early April has peaked. Despite lingering concerns about the valuation and spending plans of artificial intelligence, options traders expect the upward momentum to continue at least until January next year. Matt Maley, Chief Market Strategist at Miller Tabak + Co., said, "For the past year or two, buying hedging tools for tech stocks at year-end has been a waste of money." "If the market rallies strongly by year-end, whether you're bullish or bearish, you have to buy stocks." He was referring to institutional traders. Investor confidence in tech giants seems to be strengthening Optimism surrounding AI technology has driven the "seven giants" index up 25% this year, making NVIDIA the first company to reach a market value of $5 trillion. These seven largest tech companies, including Meta Platforms and Microsoft, account for the majority of this year's stock market gains. While concerns about unsustainable tech overvaluations persist, expectations of a rate cut by the Federal Reserve on Wednesday have eased some concerns. Data compiled by Cboe Global Markets Inc. shows that the indicator measuring tech stock volatility relative to the overall market has halved over the past two weeks, dropping from a one-year high of 8% to 4%. On the buy side, investors also echoed this view: out of the 39 global fund managers interviewed, most believe that the valuation of the "seven giants" stocks is not overly inflated. They believe that the fundamentals support this trade, signaling the beginning of a new industrial cycle. On Tuesday, the "seven giants" index rose 0.3%, marking its 10th increase in 12 trading days, while the S&P 500 index fell 0.1%. Futures market pricing indicates an 88% probability of a rate cut later today, and investors are closely watching Federal Reserve Chairman Powell's press conference for clues on future rate decisions. Optimism for the broader market also appears to be on the rise. According to Mandy Xu, head of derivatives market intelligence at Cboe Global Markets Inc., over the past two weeks, there has been an increase in demand for bullish options on the S&P 500 index, and the attractiveness of bullish contracts exceeds that of bearish contracts. However, not everyone is bullish. Gareth Ryan, Managing Director at IUR Capital, is preparing for a market pullback early next year. He said over the phone, "The first few months of 2026 may retest the low point of 6500."