Analysis-Traders chase post-election stock gains in US options market
By Saqib Iqbal Ahmed
NEW YORK (Reuters) – Options players are piling in to riskier bets across the U.S. stock market, supporting a rally that has come on the back of fading election worries and expectations of a Republican lock on power in Washington next year.
The bullish plays span a wide array of assets, from electric car maker Tesla to small-cap stocks and regional banks. Together, they have helped drive the S&P 500’s gain of 3% since the Nov. 5 vote.
“We’ve got this relief from this big risk,” said Garrett DeSimone, head of quantitative research at OptionMetrics. “It’s just across the board … you’ve got everything, with the exception of bonds, going up.”
Options traders adopted a defensive posture ahead of the election to…
