VIX Traders Pile Into S&P 500 Rebound Bets as Puts Jump
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Traders are making unprecedented use of the options market to bet on a rebound in U.S. stocks.
Ownership of puts on the Chicago Board Options Exchange Volatility Index reached a record 3.2 million on Feb. 6, according to data compiled by Bloomberg. Money poured into the bets against the VIX after the gauge, used by investors as insurance against share losses because it rises when equities fall, climbed to a 13-month high of 21.44 last week before collapsing to 15.29 by Feb. 7.