Missed the Brexit Rally? A Racy Bet Backs Both Stocks and Pound
- Call options on U.K. stock ETF alluring even if sterling jumps
- Inverse relationship between shares and currency breaking down
Photographer: Chris J Ratcliffe/Getty Images
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For traders who missed sterling’s biggest rally in a decade, there may still be a few clever ways to claim a share of the Brexit spoils. Especially if you’re willing to double-down.
Money managers can position for a rise in U.K. equities and the pound through the end of the month -- when Britain is scheduled to leave the European Union -- by buying call options on a $2.3 billion BlackRock Inc. ETF tracking the country’s stocks, according to Macro Risk Advisors and Cowen & Co.