Name: Cboe’s Mandy Xu talks why single stock volatility is rising
Uploaded: 2026-01-08T23:10:01+00:00
Duration: 227 s

Speakers

Mandy Xu — Head of Derivatives Market Intelligence, Cboe Global Markets

Summary

Mandy Xu, Cboe's Head of Derivatives Market Intelligence, says investors are rotating away from macro risk and Mag-7/tech leadership toward underperforming sectors and defense. She sees rising implied volatility in tech-heavy exposures such as QQQ and Mag 10 Index options. She warns that gold's correlation with stocks has turned positive, reducing its hedge value, and highlights the growth of option-based ETFs as an easier options-access and hedging vehicle.

Mandy Xu discusses a shift from macro risk toward single-stock and sector risks.
She sees rotation away from Mag-7 and tech into lagging sectors and defense names.
QQQ and Cboe Mag 10 Index options show rising expected volatility versus the broader market.
Gold's positive correlation with stocks weakens its role as a portfolio hedge.
Option-based ETFs are gathering AUM as an easier way to access options strategies.
Post-2022 demand for alternative hedges is supporting options-based products.

Ideas

Mandy Xu Head of Derivatives Market Intelligence, Cboe Global Markets 0:28

Rotation away from Mag-7/tech into laggards

Investors are moving away from macro risk and from Mag-7/tech leadership into underperforming sectors and defense names. She notes the best-performing sectors on the day were the worst from last year, indicating more sector rotation and thematic plays under the surface.

Mandy Xu Head of Derivatives Market Intelligence, Cboe Global Markets 0:28

Rotation away from Mag-7/tech into laggards

Mandy Xu Head of Derivatives Market Intelligence, Cboe Global Markets 1:16

Tech options volatility rising versus market

The options market is pricing increasing risk into the tech sector. Looking at QQQ and the recently launched options on the Mag 10 Index, which is Mag 7 plus three other AI stocks, implied or expected volatility for these tech-heavy exposures is rising relative to the broader market, showing investors are focused on sector and idiosyncratic risk.

Mandy Xu Head of Derivatives Market Intelligence, Cboe Global Markets 2:05

Gold hedge correlation has turned positive

Gold's role as a safe-haven or equity hedge is weakening. After a 60%+ run last year, gold's correlation with stocks has turned positive over the past couple of months, so it is behaving more like a risk asset. Investors holding gold for diversification should reevaluate and look at other hedges, though she notes there are other reasons to be bullish on gold.

Mandy Xu Head of Derivatives Market Intelligence, Cboe Global Markets 2:50

Options-based ETFs gathering assets as hedges

Option-based ETFs have gathered huge AUM over the past year or two and become a hot product because they give investors an easier way to access options strategies, buying a ticker instead of managing calls, puts, strikes, and option chains. She also links their popularity to post-2022 demand for alternative portfolio hedges after bonds sold off alongside stocks.

Cboe’s Mandy Xu talks why single stock volatility is rising

Summary

Ideas

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