Traders Boost Europe Hedges on Wildest Swings Since ’12: Options
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What a ride.
In the past two weeks, European equities tumbled almost 10 percent for the third time in 2014, then rallied the most in two years over three days. Intraday swings in the Euro Stoxx 50 Index this quarter have been the wildest since 2012, and options traders have ramped up protection. Contracts on the Europe gauge reached a 20-month high relative to prices for those on the Standard & Poor’s 500 Index, data compiled by Bloomberg show.