BlockBeats news, on June 6, as the semiconductor sector experienced a sharp correction, the Cboe Volatility Index (VIX), known as Wall Street's "fear gauge," surged nearly 40% in a single day, marking its largest increase since March this year. The VanEck Semiconductor ETF (SMH) fell nearly 10% intraday, ending a strong rally that had lasted two months and accumulated gains of approximately 80%.
Data shows that options volume on the S&P 500 reached a record 7.8 million contracts on Friday, a 16% increase from the April high. Meanwhile, following the release of strong nonfarm payroll data, the 10-year U.S. Treasury yield rose, leading to significantly increased demand for put options on the long-term Treasury ETF (TLT) as well as on investment-grade and high-yield bond ETFs.
Brent Kochuba, founder of the options analytics platform SpotGamma, said the recent anomaly—where individual stock option premiums have been significantly higher than index option premiums—is now rebalancing, and the overheated rally in chip stocks needs to cool down. Danny Kirsch, Head of Options at Piper Sandler, noted that substantial leveraged ETF capital is concentrated in the semiconductor sector, and combined with financing activities by tech giants like Meta and Alphabet, along with a surge in large IPOs, this has further amplified market correction pressures.
Affected by declining risk appetite, Bitcoin briefly fell below $60,000 before stabilizing, while Strategy's stock price dropped nearly 7% on the day, with put option volume more than double that of call options. The Nasdaq Composite recorded its worst single-day performance since April 2025.