Options Traders Join Bank Bulls as ETFs Add Most Money Since ’08
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While expectations for higher interest rates are hanging over the U.S. market, bank stocks reflect little of the anxiety and options traders see no end to the gains.
They’re snapping up bullish contracts on the biggest financial exchange-traded fund as investors pile into bank shares at the fastest rate since 2008. The ratio of calls to puts on the ETF is near the highest level since 2012 and the cost of hedging against losses has fallen to an 11-month low, according to data compiled by Bloomberg.