It has been another big year for Big Tech. Stocks like Microsoft (MSFT) and Apple (AAPL) are up double digits this year. But it may be time for a pullback.
Kurv Invest founder and CEO Howard Chan tells Yahoo Finance that though the fundamentals for tech stocks are strong and that earnings have backed up the stocks' performance, valuations have become "stretched quite a bit." As a result, he thinks "the market does need to exhale a little bit before it can inhale again."
Chan advises investors stay invested but use options "to build conditionality into your portfolio. And currently we think that the appropriate strategy would be cover calls on both a basket and single name exposures."
So how should investors do that? Watch the video above to find out.
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This post was written by Stephanie Mikulich.