Zero-day hedging takes root in new asset classes
Option users move beyond equity indexes to commodity and FX ETFs in search of cheaper, sharper hedging tools
Zero-days-to-expiration (0DTE) options trading is moving beyond equity indexes to other asset classes and sectors – notably exchange-traded funds (ETFs) – as investors seek to achieve more cost-effective and precise protection against same-day risks.
The market is “very hungry” for liquid ways of putting on targeted hedges, across assets and sectors on a shorter time scale, says Amit Deshpande, head of fixed income quantitative investments and research at asset manager T Rowe Price.
“This micro
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Investing
OCC introduces new intraday risk charge covering zero-day options
Revised measures “a nightmare” to implement, says one broker-dealer
Chicago Fed research points to systemic risk from private credit
Life insurers that have tripled exposures could face a liquidity squeeze, say economists
Altice’s dropdown is a warning for European creditors
Carve-out used to shield assets from lenders may occur in a fifth of European deals
How Jupiter times factors in uncertain markets
Asset manager is seeking to avoid momentum and value drawdowns
Fed green lights more capital relief trades
Five US banks authorised to issue repeat credit-linked notes backed by financial guarantees
Investors cheer early refi of bank AT1s
Buyers say trend is a “win-win” for asset class shaken by Credit Suisse collapse
Napier Park to increase investment in bank risk transfers
Hedge fund sees secular trend in lenders offloading credit risk, and plans to be part of it
BMO’s cloud migration strategy eases AI adoption
Canadian bank is beginning to roll out GenAI tool for internal use cases
Most read
- Too soon to say good riddance to banks’ public enemy number one
- Basel triggers new tussle on anti-Archegos rules
- Breaking out of the cells: banks’ long goodbye to spreadsheets