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Options Traders Fear Missing Stock Market Rebound, Shift to Bullish Bets on Tech Stocks
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Bloomberg reported that the focus of options traders has shifted from concerns that a war in Iran would drag down the economy to fears of missing a stock market rebound. As corporate earnings become the markets focal point, the trend is expected to continue. The report noted that the recent equity rally has prompted investors to move away from buying bearish index options and long positions in Volatility Index (VIX) options for hedging, and instead turn to bullish positions in major technology stocks. Market attention has shifted toward extreme upside moves to guard against the risk of sharp rebounds. The report cited strategists at Deutsche Bank as saying that a key theme of the recent earnings season is that the markets punishment for earnings misses has far exceeded the reward for earnings beats, and this quarter may be no exception. They added that the bar for market expectations is relatively high, with expectations being revised upward ahead of earnings announcements this time, in contrast to the usual downward revisions. Barclays also said that in the US market over the past two years, the gap between earnings-related implied volatility and actual volatility remains wide. Compared with 2Q24, single-stock option prices have risen on a relative basis. (fc/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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