Wall Street Just Set a Record That Could Signal Trouble for the Stock Market

Quick Read

• Record put volume of 11 million contracts hit Cboe as the selloff hammered SPY and QQQ, showing confidence in the AI-driven rally cracking fast.

• Goldman Sachs reported investors cut downside hedges during Wednesday’s post-election rally, then rushed back into protection as stocks collapsed Thursday.

• The VIX surged 70% to 28 in one day, just shy of the high-fear threshold, pushing options protection prices higher.

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Wall Street set a record on Thursday that points to real stress in the stock market. Put volume at Cboe reached 11.23 million contracts on November 5, exceeding the previous record of 10.22 million set on April 4, 2025. That is an increase of approximately 10%. The record came during a selloff that wiped out the post-midterm rally and sent the market’s fear index close to its spring highs. It matters now because it shows how fast confidence in the AI-driven bull market turned into a scramble for protection.

Record Put Volume Caps a Year of Heavy Hedging

A put option gives its buyer the right to sell a stock or index at a set price before a set date. Investors buy puts to profit from declines or, more often, to protect their portfolios against them, and a spike in put volume shows that many investors are trying to lock in downside protection at the same time.

Thursday’s reading continues a longer trend. The 20-day average of put volume has rose to roughly 7 million contracts, compared with approximately 4 million in 2022. That is a 75% increase in average daily activity. Eight of the 10 highest daily put-volume readings reportedly occurred this year, so the rise in hedging goes well beyond one volatile session. Bloomberg reported that options volumes overall hit record levels during the post-election selloff.

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