Volatile markets and the dealers

Dealers who trade volatility have been losing money in the past few months (because the market has only been going up with little volatility), so they also get long on and buy tech stocks just to generate alpha.

However, as a part of this strategy, they also have to write and sell out-of-the-money call options to hedge their long positions this is called a delta hedge

This provides a positive feedback loop in which they continue to buy more tech stocks and hedge by selling more OTM call options (it’s a profitable strategy because these dealers make money on both the premiums AND the gains on these tech stocks, so why stop a profitable thing)