Economics
Bearish ETF Bets Most Expensive in Two Months: China Overnight
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Options traders are paying the most in two months to protect against drops in the largest Chinese exchange-traded fund in the U.S. on concern a local money-market cash crunch will deepen a slump in Asia’s biggest economy.
The cost of three-month puts on the iShares FTSE China 25 Index Fund soared to the highest since September last week, option data compiled by Bloomberg showed. The 4.3-point premium of puts over calls was the widest since April 17. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. slumped the most in four months last week, led by a 16 percent drop in Yanzhou Coal Mining Co. The Shanghai Composite Index fell 0.5 percent to 2,150.76 at 10:43 a.m. local time, extending last week’s losses.