JPMorgan’s Options Whale Gets ETF Copycat as Hedging Booms
- One of bank’s funds is chief suspect behind big options trades
- Simplify launches ETF using similar hedges with ‘ladder’ twist
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A big options-powered trade sold by JPMorgan Chase & Co. for defensive clients is commanding so much attention on Wall Street, some say it may even sow volatility in corners of the U.S. stock market.
Emboldened by this disruptive boom in market hedging, Simplify Asset Management is pitching an easy-to-access ETF that deploys a similar strategy to the JPMorgan whale -- while being less exposed to the vagaries of the crowded marketplace for derivatives.