NEW YORK (Reuters) – Options investors are ramping up bets on some of this year’s biggest winners, including Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and Tesla Inc (TSLA.O), even as they turn cautious on the wider market amid a resurgent U.S. coronavirus outbreak.
FILE PHOTO: A Tesla car is seen in Los Angeles, California, U.S., July 9, 2020. REUTERS/Lucy Nicholson
Investors are betting that tech-related stocks will remain comparatively resilient to the coronavirus-fueled economic disruptions that have battered sectors such as retail and travel, despite growing concerns about stretched valuations following steep rallies.
Analysts also see another factor driving the momentum stocks: fear of missing out, or FOMO.
The rocket-like rise of such stocks has driven year-to-date gains for the S&P 500 technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL sectors, though the broader S&P 500 .SPX benchmark index remains negative for the