The Derivative

NASDAQ 100, Options & Volatility: 0DTE, Tail Hedges, Structured Products — with Kevin Davitt & Nicholas Smith

Sep 25, 2025
Guest
Nicholas Smith
Guest
Kevin Davitt
In a captivating discussion, Kevin Davitt, Nasdaq’s Head of Index Option Sales, and Nicholas Smith, an Index Options Specialist, delve into the exciting evolution of the NASDAQ 100. They explore why this index is garnering attention from younger investors and its unique volatility traits. The pair dissect the rise of zero-day options and the influence of AI on market dynamics. With insights into tail risk hedging and global demand for NDX products, this conversation serves as a dynamic guide to the future of investing and option strategies.
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INSIGHT

NASDAQ 100 As A New Global Barometer

  • Kevin argues markets evolve like biology and NASDAQ 100 will better reflect the global economy from 2025 onward.
  • He expects demand for risk management tools tied to the index to expand as that shift occurs.
INSIGHT

Generational Shift Toward NASDAQ 100

  • Kevin notes the NASDAQ 100 has matured since QQQ's 1999 launch and now attracts broad passive flows.
  • He believes younger investors are likely to make NASDAQ 100 a dominant long-term benchmark.
INSIGHT

NDX's Volatility Is A Feature, Not A Bug

  • NDX has historically been more volatile than the S&P by about three vol points on average, varying over time.
  • Higher upside and downside moves in mega-cap tech make NDX attractive to derivative users.
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