Options buyers resort to U.S. value stocks on vaccine optimism
After sending technology-related stocks to historic highs earlier this year through purchasing sprees, options investors had resorted to small-cap companies and other economically sensitive firms. This underscored a wider rotation into value shares after a coronavirus vaccine rendered encouraging results.
The small-cap Russell 2000 .RUT recorded a 3.7% increase, while the S&P 500 and the Dow hit record peaks. This came after encouraging vaccine news brought optimism for a faster and stabler economic rebound. Meanwhile, the tech-reliant Nasdaq had seen a subdued session.
Call options demand advanced in the past week among travel and leisure companies that suffered from pandemic-led lockdowns and restrictions. Some of these are United Airlines Holdings Inc, Marriott International Inc, and Wynn Resorts Ltd.