Options buyers resort to U.S. value stocks on vaccine optimism

11.11.2020 - Davydova Maria
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.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?