Bets on stock-market swings boom as traders face uncertain Fed rate decision
Market Extra
Bets on wild stock-market swings boom as traders face most uncertain Fed rate decision in recent memory
An options strategy that would pay off if stocks see a sharp move in either direction is pricing in the biggest Fed-day move since March 2023
Published:
Some options traders are leaving nothing to chance ahead of Wednesday’s Federal Reserve policy meeting.
The price of a strategy that would pay off if stocks see a sharp swing in either direction on “Fed day” has risen to its highest level since the run-up to the central bank’s March 2023 meeting. Back then, investors were on tenterhooks following the collapse of Silicon Valley Bank.