Very short-dated options account for 43% of volume in S&P 500 options
S&P 500The market for extremely short-dated options on US stock market moves has boomed in recent weeks, sparking fears among analysts that the daily bursts of activity could be causing sharp sell-offs in equities.around events such as economic data releases or monetary policy meetings, have surged in popularity since the start of the coronavirus pandemic.
Analysts say demand for zero-day contracts has further surged in the past three weeks as financial markets have become more volatile. Last week global bond yields jumped to multiyear highs as investors adjusted their expectations thatFour of the all-time top 10 days for S&P 500 zero-day options purchases have come in August, according to Nomura, over which time the benchmark US index has slipped more than 4 per cent.
Goldman Sachs suggested that on Tuesday tens of thousands of orders for bearish zero-day put options worth a cumulative $45bn had forced market makers who need to manage their exposures to buy protective hedges. This pushed them out of equities and forced the S&P 500 down 0.4 per cent in just 20 minutes, said Goldman.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Search for missing 43-year-old man from PrestonJohn Bancroft was last seen in Preston at 10.45pm on Saturday night
Weiterlesen »
Strong US economy forces investor rethink on interest ratesProspect of inflation staying higher for longer and poor summer liquidity drives surge in bond yields
Weiterlesen »
Weili Zhang sets striking record as she dominates Amanda Lemos over five rounds to retain strawweight title at UFC 292Weili Zhang made history during her latest fight. The Chinese MMA star outpointed Amanda Lemos over five rounds to at UFC 292 retain her strawweight title courtesy of 50-43, 50-44, and 49-45 scorec…
Weiterlesen »