A Boring Week in U.S. Stocks Masks a Roaring Appetite for Hedges
- Options open interest in SPY ETF jumps to highest since 2011
- Investors take on wagers amid persistent dip-buying mentality
Turnill Says Political Uncertainty Not Is Slowing Markets
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The main U.S. equity gauge moved just a 10th of a percent last week, but investor hedging has jumped to a six-year high.
Nowhere was the active bet-taking more apparent than on derivatives for two of the biggest U.S. equity-index funds. Total open interest for options on the $244 billion SPDR S&P 500 ETF Trust, or SPY, rose to the highest since October 2011. The measure also surged on the biggest small-cap ETF, as defensive companies regained leadership and the U.S. yield curve flashed bearish signals.