Europe Bank Rally Emboldens Traders Sending Bullish Bets to Peak
- Calls hit record volume as lenders up more than other sectors
- They still trade at discount to broader market, U.S. banks
While years of underperformance have cheapened Europe’s banking stocks, factors that have long dogged the sector are starting to reverse.
Photographer: Martin Leissl/BloombergThis article is for subscribers only.
European banks have had an epic run this month, and investors are positioning for more to come.
As lenders rallied the most among industry groups in March, options traders doubled down. They pushed the volume of bullish contracts on the Euro Stoxx Banks Index to levels never seen before, and the number of outstanding calls reached a two-year high versus bearish puts.