Economics
Cost of Bearish Chinese ETF Bets Surges as Growth Slows
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Options traders are paying the most in six months to protect against declines in the largest Chinese exchange-traded fund on concern economic growth is slowing amid a selloff in emerging-market equities.
Puts hedging against a 10 percent decline on the iShares China Large-Cap ETF cost 5.8 points more than calls betting on a 10 percent increase, according to three-month implied volatility data compiled by Bloomberg. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. fell 1 percent last week, led by Sina Corp. The gauge dropped 8.4 percent in January, the worst monthly slide since 2012.