Bank Hedges Highest in Two Years on Rates, Crude Concern
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Two things that would boost profits for banks are higher interest rates and a rebound in oil prices. Options traders are speculating neither is coming anytime soon.
Demand for options that protect against future losses in shares of an exchange-traded fund tracking financial firms in the Standard & Poor’s 500 Index rose to the highest level in more than two years relative to bullish ones, according to data compiled by Bloomberg. Puts on the ETF make up seven of the top 10 options with the highest ownership, the data show.