$18 Million Options Bet Targets Fed Holding Rates Still All Year

At least one big option trader has dialed up an $18 million bet that the Federal Reserve will avoid cutting interest rates any time this year.

Investors in the futures and options markets are, on the whole, still pricing in a rate reduction at the Fed’s July meeting and at least two more this year. But over the last few weeks, a significant position has been building up in an options contract that will pay off if the Fed either keeps rates stable or raises them in 2025.