World & BusinessOptions traders reportedly hedge against a shallower Fed rate-hike cycle
Bloomberg reports that traders are shielding themselves against the possibility of the Fed raising interest rates less than markets are pricing in.
TLDR
Options traders are loading up on hedges for a potentially shallower Federal Reserve rate-hike cycle, Bloomberg reports. They are seeking protection against the possibility that the Fed raises rates less than markets are pricing in—not necessarily against rates falling.
Options traders reportedly hedge against a shallower Fed rate-hike cycle
Bloomberg reports that traders are shielding themselves against the possibility of the Fed raising interest rates less than markets are pricing in.
TLDR
Options traders are loading up on hedges for a potentially shallower Federal Reserve rate-hike cycle, Bloomberg reports. They are seeking protection against the possibility that the Fed raises rates less than markets are pricing in—not necessarily against rates falling.