Hedge funds are ramping up option strategies that profit from divergence between individual stocks and broader equity indexes, as pockets of extreme volatility in US and European markets create fresh trading opportunities, according to a report by Bloomberg.
Despite subdued moves in major indices, software and technology stocks have experienced wild swings amid AI-related fears, while M&A activity has driven sector-specific rotations in Europe. This has boosted demand for dispersion trades,...
Continue Reading
Sign up for FREE to read the full article and access 129K+ alternative investment headlines.