Options traders have been boosting bullish bets on an exchange-traded fund that gains when VIX futures fall. The number of calls on the security known by its ticker SVXY has jumped to a record, while puts outstanding have plunged, taking the ratio between the two near a peak. Following the demise of its cousin XIV in February, SVXY’s provider said this week it would reduce its target leverage, which would protect investors from getting wiped out with a one-day spike in its underlying index.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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