Tag

Hedging

All articles tagged with #hedging

markets21 days ago•13 min saved

Hedge Rush: IBIT Options Surge as Bitcoin Sells Off

During Thursday’s sharp Bitcoin sell-off, BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw a record surge in options trading—about 2.33 million contracts with roughly $900 million in premiums—primarily in puts versus calls, suggesting investors were hedging downside risk rather than selling the ETF. IBIT traded around $39.68 after a nearly 10% intraday gain, though the ETF remains down around 31% in the last month and 34% in 2025 as Bitcoin’s volatility persists; Friday’s rebound followed the drop and kept IBIT under close watch as institutional positioning in Bitcoin grows through the ETF’s options market.

via TipRanks|

#bitcoin #blackrock #hedging

markets1 month ago•18 min saved

Hedge-fund veteran: own both gold and the dollar to weather market turbulence

Alexander Campbell, the former Bridgewater commodities chief, argues investors should hold both gold and the U.S. dollar as a hedge, saying the dollar’s slide is a temporary correction and that a bearish view on the U.S. should focus on selling stocks and bonds rather than shorting the dollar.

via MarketWatch|

#alexander-campbell #diversification #gold

business1 month ago•0 min saved

Silver's Parabolic Rally Triggers Options-Based Hedging

Silver is spiking in a parabolic rally, with traders weighing options-based hedges to protect against a potential pullback.

via CNBC|

#business #hedging #markets

business1 month ago•0 min saved

Calm Markets Prompt a Hedge-Ready Playbook for Volatility Surges

With markets feeling unusually calm despite evident risks, the article explores how traders can hedge against a potential spike in volatility, outlining protective strategies to shield portfolios.

via CNBC|

#business #hedging #options

markets4 months ago•5 min saved

JPMorgan Strategist Predicts Gold Could Double in Value After Recent Drop

A JPMorgan strategist suggests that gold could more than double in value over the next three years, driven by increased investor demand for hedging against equities, despite recent declines influenced by profit-taking in futures contracts. Goldman Sachs remains bullish, targeting $4,900 per ounce by the end of 2026, amid broader institutional interest.

via MarketWatch|

#gold #gold-price-forecast #hedging

finance5 months ago•3 min saved

Gold Reaches Record Highs Amid Economic Uncertainty and Rate-Cut Bets

U.S. stocks are experiencing a strong rally driven by economic growth and AI investments, while gold prices hit a record high as investors hedge against potential economic uncertainties like a government shutdown and geopolitical tensions. Both moves reflect investor confidence in the economy's resilience but also caution due to possible risks, with stocks benefiting from expected Fed rate cuts and earnings growth, and gold serving as a safe haven amid market tensions.

via Barron's|

#economic-growth #finance #gold

finance6 months ago•4 min saved

Wall Street Prefers Vanilla Options Over VIX for Hedging

Investors are favoring vanilla options like S&P 500 put spreads over VIX calls for hedging due to cost and reliability concerns, amid a market rally driven by dovish Fed signals and upcoming Nvidia earnings. The steep VIX futures curve and recent flows into long VIX ETPs have influenced this shift, with traders cautious about volatility spikes and the impact of upcoming economic data.

via Bloomberg|

#finance #hedging #investor-strategies

finance6 months ago•4 min saved

Market Rally Continues Amid Mixed Signals and Rising Valuations

As US markets reach new heights, investors are grappling with how much to hedge against potential downturns amid stretched valuations and signs of increased caution, balancing optimism with protective strategies like bonds and options while monitoring market resilience and volatility.

via Bloomberg.com|

#finance #hedging #investor-sentiment

finance7 months ago•2 min saved

Market Anxiety Rises Amid Economic Uncertainty and Rising Hedging Costs

Fear of a stock market decline is resurging as hedging costs increase, driven by economic jitters, weaker job growth, and tariff concerns, leading investors to buy more downside protection amid heightened market stress and upcoming traditionally volatile months.

via Bloomberg|

#finance #hedging #investor-sentiment

finance7 months ago•3 min saved

Wall Street's Rising Hedging Activity Amid Record Market Highs

Investors are increasingly using exotic options like lookback and re-settable puts to hedge against potential market declines amid record-high stock levels and low volatility, especially in tech stocks, as they prepare for upcoming economic and geopolitical events.

via Bloomberg|

#exotic-options #finance #hedging

finance9 months ago•4 min saved

US Inflation Eases to 2.1% as Consumer Spending Slows

Traders are increasing hedges against a wide range of Federal Reserve interest rate outcomes amid economic uncertainty, with market positions reflecting expectations of possible rate cuts or stability, influenced by economic data and trade policies, and with significant activity in options and futures markets.

via Bloomberg|

#fed-rate-cuts #finance #hedging

finance1 year ago•0 min saved

"Stock Bulls Hedge Amid Fed Policy Stall: Q1 2024 Market Review & Q2 Outlook"

Traders, previously complacent, are now seeking hedges for the S&P 500 as the demand for market insurance increases following a bumpy week, signaling a shift from the long-standing bullish sentiment amidst stalling Fed policy.

via Bloomberg|

#fed-policy #finance #hedging

finance2 years ago•0 min saved

The Rise and Fall of JEPI: A Volatile ETF Journey

BNY Mellon's global head of ETFs, Ben Slavin, predicts that exchange-traded funds (ETFs) utilizing options overlays will be the next hot product in the market. Options overlays provide investors with a means to hedge against potential losses. Slavin expects more issuers to enter this space as the trend gains momentum.

via CNBC|

#etfs #finance #hedging

finance2 years ago•1 min saved

Goldman Sachs predicts strong returns on commodities and energy

Goldman Sachs predicts higher returns on commodities in the next 12 months, driven by higher spot prices, easing monetary policy, and hedging against geopolitical supply risks. The bank forecasts a 21% return on the S&P GSCI Commodity Index, with energy and industrial metals leading the way. Factors such as OPEC-driven declines in oil inventories, demand for green metals, and ongoing resilience in commodity demand are expected to support these returns. However, the bank has trimmed its 2024 average Brent price forecast due to factors such as a warmer fourth quarter and rising supply from some producers.

via Reuters.com|

#commodities #finance #goldman-sachs

finance2 years ago•2 min saved

JPMorgan's Options Trade and Stock Performance Amidst Banking Crisis.

JP Morgan's nearly $16 billion Hedged Equity Fund is expected to reset its options positions on Friday, which could add to equity volatility at the end of a gloomy quarter for stocks. The fund uses an options strategy that seeks to protect investors if the S&P 500 falls between 5% and 20%, while allowing them to take advantage of any market gains in the average range of 3.5-5.5%. Options dealers take the other side of the fund's options trades, and to minimize their own risk, they typically buy or sell stock futures, depending on the direction of the market's move. Such trading related to dealer hedging has the potential to influence the broader market, especially if done in size, as is the case for the JPM trade.

via Reuters|

#finance #hedging #jp-morgan