00:00It's Benzinga bringing Wall Street to Main Street.
00:02Wall Street investors are increasingly seeking protection against a potential downturn in
00:07artificial intelligence stocks, according to The Wall Street Journal. Demand for put options and
00:13credit default swaps is rising as concerns grow over AI spending and heavily indebted technology
00:18companies. According to CBOE Global Markets, put options tied to CoreWeave reached record volume
00:25in October. Meanwhile, the cost of insuring against debt defaults at major technology
00:30companies climbed to its highest level since 2021. Jump Trading is developing derivatives
00:36tied to computing power, while Susquehanna International Group has received interest from
00:41data centers and neocloud companies seeking to hedge their exposure to semiconductor chips.
00:46Jump Trading President Dave Olson said investors are asking tougher questions about companies'
00:51economic models. For all things money, visit Benzinga.com.
