Stocks Traders Eyeing Fed Hedge for Rally With Call Options
- Share of calls traded reached a 14-month high last week
- S&P 500 nears August peak after entering bull-market territory
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Investors are loading up on call options as they brace for a pivotal Federal Reserve decision that’s set to dictate the tone for equities heading into the second half of 2023.
Options trading on US exchanges at one point last week showed the biggest bias toward calls in 14 months, data compiled by Bloomberg show. Using calls lets investors capture the upside if the bull market proves resilient, while still remaining defensive because they’re wary of what the Fed might signal this week about its policy path.