One Big Bet: Options Traders Wager Rates Have Peaked

[ETJ]

One Big Bet: Options Traders Wager Rates Have Peaked
Eric Wallerstein - WSJ
Long-term bond yields have climbed sharply, punishing an ultralong bond ETF. Options traders are betting rates are due for a steep drop.
Roughly 2.8 million call option contracts are sitting in investors' hands, a record according to Cboe data. That's nearly double the total a year ago, and more than triple the 800,000 or so put contracts outstanding.
/jlne.ws/3PX3q7r

 

[M.W.]

Spec positions financed by yield capture disguised as hedging positions. Bets are for a rather swift drop in yields and/or steepening of the curve.

One Big Bet: Options Traders Wager Rates Have Peaked
Eric Wallerstein - WSJ
Long-term bond yields have climbed sharply, punishing an ultralong bond ETF. Options traders are betting rates are due for a steep drop.
Roughly 2.8 million call option contracts are sitting in investors' hands, a record according to Cboe data. That's nearly double the total a year ago, and more than triple the 800,000 or so put contracts outstanding.
/jlne.ws/3PX3q7r

 

[TheDawn]

One Big Bet: Options Traders Wager Rates Have Peaked
Eric Wallerstein - WSJ
Long-term bond yields have climbed sharply, punishing an ultralong bond ETF. Options traders are betting rates are due for a steep drop.
Roughly 2.8 million call option contracts are sitting in investors' hands, a record according to Cboe data. That's nearly double the total a year ago, and more than triple the 800,000 or so put contracts outstanding.
/jlne.ws/3PX3q7r

Don't think a steep drop is in order, more like a gradual easing of rates starting with a slower increase in rates.