Greed Never Felt So Good to Hong Kong Bulls Chasing Stock Gains
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Hong Kong options traders have never been so bullish on the city’s stock market after surging inflows from mainland China propelled the Hang Seng Index to the biggest rally worldwide last week.
Wagers on gains for the benchmark gauge increased to the most expensive level on record versus bearish ones Friday as the measure completed a 7.9 percent weekly advance, the most among national equity gauges. Surging demand for bullish contracts has been a past harbinger of gains, with the Hang Seng index posting an average one-month increase of 1.3 percent the five times since 2005 that calls became pricier than puts.