Are you hedging, buying put options? Wall Street is, as Bloomberg reports:
“Institutional traders paid $8.1 billion to initiate purchases of equity puts last week, the highest total premium in at least 22 years … demand for hedges matches levels from the 2008 financial crisis.
The spree is the latest evidence of sky-high anxiety on Wall Street in a market where strategists at firms from Morgan Stanley to Goldman Sachs Group Inc. are warning that the 2022 bear market has yet to see its bottom. Cash holdings rose in mutual funds and hedge funds cut equity holdings to multi-year lows.
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“They’re buying protection against a crash at a pace unlike anything the market has ever seen…”
Crash-Obsessed Traders Splurge on Options at Two-Decade High
https://www.bloomberg.com/news/articles/2022-09-08/crash-obsessed-traders-splurge-on-options-at-two-decade-high
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