Sr. Correspondent, Broker Research, Bangalore, India
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Feb 9, 2015
Feb 9, 2015
Feb 9, 2015
Feb 8, 2015

Bumpy stock market leads to surprise drop in hedging with VIX options

NEW YORK (Reuters) – The U.S. stock market has been a bumpier place for the last couple of months, but you would not know it to look at the activity in trading VIX options.

Even though the CBOE Volatility Index , the market’s favored index of Wall Street anxiety, has traded higher lately than most of the last two years, there has been a significant drop in trading volume and open interest in VIX call options over the last three months.

Feb 6, 2015
Feb 6, 2015
Feb 5, 2015
Feb 5, 2015
Feb 5, 2015
Feb 5, 2015

Ahead of Pandora results, a bearish bet targets share price drop

NEW YORK, Feb 5 (Reuters) – A large bet in the options of
Pandora Media Inc on Thursday appeared to be banking on a
sharp drop in the share price of the U.S. Internet-radio-service
provider after it reports its quarterly results later in the
day.

On Thursday, a trader in the options market appeared to have
bought 14,000 Pandora put options that bet on shares dipping
below $16 by Friday, or about 13 percent, said Fred Ruffy,
options strategist at WhatsTrading.com. The contracts were
traded at 35 cents.

    • About Saqib

      "Saqib Ahmed is an options correspondent working with the Markets team in New York. He previously led the Reuters Broker Research team in Bangalore. He joined Reuters in 2009 after graduating from the Asian College of Journalism."
      Joined Reuters:
      2009
      Languages:
      English, Hindi, Bengali
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