[U.S. Stock Market Hits Record Highs, Triggering 'Fear of Missing Out'; Institutions Increase Call Option Purchases] BlockBeats News, August 14: As U.S. stocks continue to reach new historical highs, investors' primary concern is shifting from market downturns to fears of missing out on the rally. The S&P 500 Index has risen approximately 23% since late March, driven by strong corporate earnings, easing inflation pressures, and reduced market bets on Federal Reserve rate hikes. Institutional funds are significantly increasing their allocation to call options. According to Citadel Securities data, demand for call options on at least 170 S&P 500 component stocks has surpassed demand for options betting on market volatility, with the gap reaching its highest level since at least 2016. Scott Rubner, Head of Equities and Equity Derivatives Strategy at Citadel Securities, stated that the chase for upside potential is nearing historical highs. Interactive Brokers Chief Strategist Steve Sosnick referred to this type of trading as 'fear of missing out insurance,' where investors, unwilling to directly chase high-priced stocks, buy call options to retain the opportunity to participate in the rally. Meanwhile, implied market volatility continues to decline. The VIX Index has dropped to its lowest level since January this year, and the equal-weighted VIX Index has also hit its lowest point since March 17, making the cost of downside protection relatively low. On Thursday, a large institutional investor spent $23.4 million to purchase a massive put option spread, betting on a significant 38% drop in the S&P 500 Index by December 18, which would yield substantial returns on the hedge. Sosnick noted that the current market is characterized by a strong pursuit of upside potential on one hand and low costs for downside protection on the other, leading some institutions to simultaneously participate in the rally through call options while using the relatively low costs to establish tail-risk hedges.