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Wall Street Traders Gorge on Short-Term Stock Options as Fed Day Looms

  • Trading volume spikes in SPY contracts maturing within a week
  • Focus turned to short term as market stuck in range trading
Bloomberg business news
Markets Should Not Price in Rate Cuts Next Year: Xu

Betting on Federal Reserve-spurred market fireworks, but lack conviction on where stocks are headed in the months ahead as news bombs hit the tape? You’re far from alone. 

Stocks retreated Tuesday, with the S&P 500 sinking more than 1% on the eve of the Federal Open Market Committee decision. Wild daily market moves have been so common of late that options traders are loading up on short-term bets at a pace unseen in the post-lockdown era.