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One Big Option Trade Fueled S&P 500’s Midday Jump, Wells Fargo Says

  • Susquehanna sees dollar’s retreat, GDPNow upgrade as catalysts
  • It’s latest example of a chaotic market that defies easy logic
Bloomberg business news
Rally Came for All the Wrong Reasons, Says Roland

One giant options transaction may have sparked the S&P 500’s bounce on Wednesday, according to Wells Fargo & Co. 

The trade, which involved buying and selling call options tied to the index at a cost of around $31 million, probably helped fuel a recovery that saw the benchmark gauge erase a 1.8% decline, says Chris Harvey, the firm’s head of equity strategy.