Markets have been volatile for much of 2022 and this year, thanks to inflation, U.S. Federal Reserve interest rate hikes and the banking crisis. Tech stocks were in bear territory for much of last year, but have been a bright spot so far in 2023 despite the uncertainty. Ben Rogoff, a portfolio manager at Polar Capital with 25 years of investing experience, has a strategy for mitigating risk when investing in growth stocks such as tech.
"We're not looking to use any of these derivative products to try to create … returns," he said, referring to call options, which are a form of derivative. "It's all about trying to more efficiently manage the portfolio." In a note earlier this month, Goldman also recommended that clients buy call options on those two tech titans , saying that they're attractively priced and its analysts see positive signs in their earnings reports.