UK election fog prompts surge of FTSE 100 puts
Negative bets on the FTSE 100 rose sharply last week, suggesting investors are belatedly seeking downside protection for their UK equity holdings in expectation of a period of political uncertainty following the UK general election tomorrow
Fears that the UK general election on May 7 could usher in weeks of political instability have sparked a sudden surge in negative bets on the FTSE 100. Last week saw £12 billion notional of put options traded on the FTSE - up a third on the previous week, according to UBS's equity derivatives strategy team - nudging the ratio of puts to calls traded on the index towards historical highs.
Current polls suggest neither the Conservative Party - which currently leads a governing coalition with the
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