The ratio of protective puts to speculative calls on KOSPI 200 has climbed toward 2.5x as of the last close, a five‑year high and near levels that historically presaged sharp declines. Prior breaches of the 2.5 threshold (July 2007 and January 2021) were followed by roughly a 17% fall in one month and a >5% drop in three weeks, respectively. The shift reflects cooling momentum in the Korean market and rising investor caution on AI-related names amid concern that sticky inflation could keep rates

The ratio of protective puts to speculative calls on KOSPI 200 has climbed toward 2.5x as of the last close, a five‑year high and near levels that historically presaged sharp declines. Prior breaches of the 2.5 threshold (July 2007 and January 2021) were followed by roughly a 17% fall in one month and a >5% drop in three weeks, respectively. The shift reflects cooling momentum in the Korean market and rising investor caution on AI-related names amid concern that sticky inflation could keep rates higher for longer. Arun Singh, CEO of Indicus Capital, said the put/call move signals global momentum trading is cooling and that modest hedging is reasonable while rates and inflation expectations are being repriced.