Strange market anomaly is creating a buying opportunity in the Nasdaq 100

The Nasdaq-100’s rally has been driven by “low breadth,” meaning a small group of mega-cap tech companies is carrying a large share of index performance. The top 10 firms make up about half the NDX’s market-cap weight, leaving investors exposed to the risk that leadership could reverse. Options strategists point to “implied correlation” as a way to express a bullish view with defined risk. With the 1-month forward implied correlation around 0.177—near the 25th percentile—index options appear priced as if diversification is higher than the reality of narrow leadership. The article suggests buying QQQ November 760 calls for about $22.70.