Bank of America Disputes Goldman Logic on Zero-Day Option Threat to Stocks
- Booming investing tool spurs fresh handwringing on Wall Street
- Latest debate centers around last week’s flurry in put trading
A Bank of America ATM in Chicago, Illinois.
Photographer: Christopher Dilts/BloombergThis article is for subscribers only.
The heated debate on the threat posed by the boom in stock derivatives that expire within 24 hours is pitting two of Wall Street’s biggest banks against each other.
After Goldman Sachs Group Inc. blamed the rise of zero-day options for the late-afternoon S&P 500 selloff seen on Aug. 15, Bank of America Corp. dubs the logic “largely misguided.”