Goldman Sachs trading desk data shows that the put/call ratio (PCR) for ETFs and index options rose to 112% in July, a new high for the year. Meanwhile, since March, the PCR gap between ETF+index options and single-stock options has continued to widen, currently reaching 53 percentage points. This indicates that funds are still actively selecting individual stocks while significantly strengthening hedging against overall market risk. Goldman Sachs believes that traders may continue to hold stocks they favor and use ETFs and index options to mitigate drawdown risks from the market, interest rates, and the macroeconomic environment.
If demand for index put options continues to increase and single-stock buying remains resilient, the market may further enter a phase of "selective stock picking and lowering overall beta."
