POPULAR HEDGE FUND OPTIONS STRATEGY ATTRACTS CONTRARIAN BETS
https://s.yimg.com/ny/api/res/1.2/cic_BPRvz8rcXCt_YacVJw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD03NjM-/https://media.zenfs.com/en/bloomberg_holding_pen_162/808050f163b9080d3153ffc3fcaf8559
✍️ Some investors are taking the opposite side of the dispersion trade, betting on calm in the broader equity market and wider swings in individual shares.
👉 The dispersion trade has become a popular strategy among Wall Street hedge funds. 👉 Some investors are taking the opposite side of the wager, betting on calm in the broader equity market and wider swings in individual shares. 👉 The US equity market has been calm since August, with 60-day realized volatility at its lowest level since before the pandemic. 👉 Individual stock prices are churning violently, with Oracle Corp.'s 32% surge over the past month being just one example. 👉 Hedge funds are ramping up bets on calm in the broader equity market and wider swings in individual shares, but margins are narrowing.
-- #BennEifert #GregBoutle #AmyWuSilverman #AlexAltmann #StefanoPascale #business
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