(Bloomberg) — The boom in stock market options shows no sign of let up, as the number of traded US contracts surpassed the 10-billion mark in 2022 for the first time ever, playing a role in the biggest equity rout in over a decade For the third straight year, contracts in US single-stock and index […]
(Bloomberg) — It’s a niche trade beloved by retail players and institutional pros that’s paid off handsomely this year: Selling equities just before trillions of dollars worth of options expire. Yet this time round, the strategy is backfiring in the latest case of a punishing stock market that’s challenging once-reliable playbooks. Heading into Friday’s $2 […]
(Bloomberg) — On a day when a hotter-than-expected inflation print rattled Wall Street and beyond, the pain was particularly acute for a group of speculators who had just piled into risky stock bets across multiple corners of the options market. Traders had poured money into a slew of bullish contracts in the runup to Tuesday’s […]
(Bloomberg) — As if another inflation shock and earnings drama at big banks weren’t enough for stock investors, Friday brings a critical moment where many option traders must decide their next move on hedging. About $1.9 trillion of options are set to expire, obliging investors to either roll over existing positions or start new ones. […]
(Bloomberg) — Stock traders still clinging on after this week’s vicious drop in US benchmarks had better tighten their grip — OpEx is back to whip up more turmoil. The monthly expiration of options tied to equities and exchange-traded funds is notorious for stirring up volatility, and the next event takes place on Friday. Traders […]
(Bloomberg) — Inflation is surging, central banks are on the move and now it’s earnings season. To top it all off, stock traders face the market-roiling potential of a monthly options expiration estimated at more than $2 trillion. Roughly $495 billion in single-stock derivatives are set to expire Thursday, with another $980 billion of S&P […]