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Buying Call Options Is New Stock Hedge for Traders Eyeing a Big Bounce

  • Options activity shows demand rise for calls relative to puts
  • Traders are preparing for market turmoil to remain elevated

Bearish investors are snapping up bullish options to ensure that their defensively positioned portfolios won’t be left behind if the latest rebound in US stocks proves persistent.

Having slashed exposures or loaded up on hedges amid the past month’s equity turbulence, traders are now rushing to add calls that will help them participate in any upside -- while retaining their defensive stances overall.