f
  •  

By Saqib Iqbal Ahmed

NEW YORK (Reuters) - Monday's slide in U.S. stocks prompted at least one large investors to load up big on stock options that would guard against a sharper hit to stocks into the start of next year.

Shortly after the market opened on Monday, an investor paid about $31 million to buy 16,000 of January put options at the 2,980 level on the S&P 500 Index (SPX), according data from options analytics firm Trade Alert.

The position struck about 4.6% below the market's current level around 3,124 appears to be hedging roughly $4.8 billion in assets, said Henry Schwartz, president of Trade Alert in New York.

An index put option gives the holder the right to sell the value of an underlying index at a fixed level in the future, thereby offering protection against a slide in the market.

U.S. stocks fell on Monday after President Donald Trump decided to restore tariffs on metal imports from Brazil and Argentina and weak factory activity fanned worries of a slowing domestic economy due to the long-drawn trade war with China.

The S&P 500 (SPX) was 0.53% lower at 3,124.45 in afternoon trading.

"The trade may be a year-end hedge following last week's all-time highs above $3154," Schwartz said.

On Monday, the CBOE Volatility Index (VIX), a widely followed options-based barometer of expected near-term volatility for stocks, rose to a near 6-week high of 15.27 before paring gains to trade up 1.34 points at 13.96.


Other relevant articles 
[2019-12-02 08:50:27] Just Eat investor Cat Rock puts 925 pence per share price on...
[2019-12-02 03:35:28] Yes Bank Gets $2 Billion Pledge From Little-Known Investors
[2019-11-28 17:50:09] Exclusive: Big four auditors face investor calls for tougher...
[2019-11-27 13:10:08] Wall Street Week Ahead: Investors expect international stocks to outperform U.S....
[2019-11-27 12:10:08] Goldman Says Germany Needs Large Fiscal Stimulus, China Bit More
[2019-11-27 09:35:10] Hong Kong-based investors still show appetite for investment in the city: survey
[2019-11-26 18:30:06] Activist investor seeks to oust Trump friend Barrack from CEO job...
[2019-11-26 14:10:04] Chile deputy trade minister seeks to reassure investors over...
[2019-11-26 09:30:06] European shares calm as investors seek any signs of trade deal...
[2019-11-26 08:40:04] Just Eat-shareholder Cat Rock urges investors to back...
[2019-11-25 14:50:24] MSCI arms all investors with sustainability ratings of 2,800 top...
[2019-11-22 18:15:12] Activist investors to pressure privately held Palantir on human...
[2019-11-22 14:20:12] World’s Largest IPO Drowns The Voice Of An Oil-Bull-Turned-Bear
[2019-11-21 11:10:07] Investors Fear Colombia Could Join Latin America’s Year of Rage
[2019-11-21 10:35:07] European banks face large capital shortfall with Basel III rules:...
[2019-11-20 21:15:09] Fund investors continue retreat from U.S. stocks
[2019-11-20 13:35:07] Saudi Aramco to meet investors in Dubai and Abu Dhabi: sources
[2019-11-20 12:15:07] Equities back in favor for sovereign investors in third quarter
[2019-11-19 13:15:04] Sustainable investors face squeeze as larger firms move in
[2019-11-19 04:55:26] Tesla Set to Bulk Up the World’s Largest Lithium-Ion Battery
[2019-11-19 03:00:29] Oil slips as lack of U.S.-China trade talk progress frays...
[2019-11-18 19:10:23] Large gender bias class action vs Sterling Jewelers revived: U.S....
[2019-11-18 14:50:22] Aramco Failure to Win Foreign Investors Makes IPO a Local Event
[2019-11-15 04:45:12] Asian Markets Rise as Investors Await Trade News; Hong Kong...
[2019-11-14 19:20:08] Istanbul mayor seeks to bond with investors on London charm...
[2019-11-13 16:30:09] Woodford analysis suggests investors may lose a third of their...
[2019-11-13 02:00:14] Dollar holds gains as investors cling to trade hopes
[2019-11-12 16:05:04] Stocks - Wall Street Flat as Investors Wait for Trump Speech 
[2019-11-12 14:30:05] FOMO Grows as Investors Scurry to Catch Stock Market Boom
[2019-11-12 11:35:04] German Investor Sentiment Improves on Signs Economy Near Bottom
[2019-11-12 11:25:03] German investor sentiment jumps on positive trade developments:...
[2019-11-12 01:10:35] European tech investor Balderton launches $400 million start-up...
[2019-11-11 13:05:29] Stocks - U.S. Futures Slump as Hong Kong Chaos Rattles Investors 
[2019-11-11 12:15:23] Exclusive: Goldman Sachs plans shift from revenue goal at first...
[2019-11-11 11:30:24] World shares fall as Hong Kong violence unnerves investors
[2019-11-11 11:30:24] Police shooting rattles Hong Kong markets, investors count on...
[2019-11-11 11:10:22] World shares fall as Hong Kong violence unnerves investors
[2019-11-11 07:20:23] Investors wary as social unrest spreads from Hong Kong to...
[2019-11-09 23:40:17] Saudi Aramco confirms to sell 0.5% to retail investors, lockup...
[2019-11-09 15:55:15] Saudi Aramco targets sale of 0.5% of oil firm to retail investors...
[2019-11-08 22:30:26] Mega Auction a Flop? Petrobras Investors Are Doing Fine, Thank...
[2019-11-08 22:30:26] Oil Rebounds After Investors Shake Off Trump’s Tariff Comments
[2019-11-08 18:55:11] Activist investor Carl Icahn sells nearly a third of his...
[2019-11-08 08:30:12] Global investors flock to China, undeterred by trade war
[2019-11-08 07:15:11] Negative U.S. interest rates? Not likely, say investors
[2019-11-07 13:20:29] Russia-China fund seeks Chinese investors for Saudi Aramco IPO
[2019-11-06 20:20:09] Chile copper mine output largely unaffected by protests despite...
[2019-11-06 18:10:08] Record highs not enough to lure fund investors to U.S. stocks
[2019-11-06 16:30:13] LSE investors to vote on Refinitiv deal on November 26
[2019-11-06 13:10:08] Stocks - U.S. Futures Flat as Trade News Dries up
[2019-11-06 06:15:12] Oil Prices Fall Amid Larger-Than-Expected U.S. Crude Build
[2019-11-06 02:05:16] Asian markets tread water as investors await clues on trade
[2019-11-05 21:00:12] Qualcomm Earnings Preview: Investors Counting On Sales Boost From 5G...
[2019-11-05 15:00:10] Foxconn-backed HCM in talks on new larger tech fund
[2019-11-04 22:15:25] Trade Is Investors’ Top Election Concern, Morgan Stanley Says
[2019-11-04 21:55:26] Gold Dips, but Stays Glued Near $1,500 as Investors Seek Hedge
[2019-11-04 21:50:32] Gold Dips, but Stays Glued Near $1,500 as Investors Seek Hedge
[2019-11-04 16:20:31] Give or take a trillion: Investors in the dark on Saudi Aramco value
[2019-11-04 14:20:36] Give or take a trillion: Investors in the dark on Saudi Aramco...
[2019-11-01 21:15:14] Top Argentine Investor Warns Narrow Path to Avoid Vulture Funds
[2019-11-01 20:35:15] Uber Earnings Preview: Widening Losses May Haunt Investors
[2019-11-01 15:25:13] Aramco meets investors in last-minute bid to hit $2 trillion IPO...
[2019-11-01 13:35:11] Starved for income? Hungry investors hunt dividend ETFs
[2019-10-31 16:30:10] Gold Prices Rise as Investors Renew Easing Bets After Fed Move
[2019-10-30 22:55:10] Crop Giant Bunge Joins Investors Dumping Beyond Meat Stock
[2019-10-29 21:10:06] Stocks - S&P Pulls Back as Investors Take Some Profits Ahead of Fed
[2019-10-29 15:15:07] Stocks - Wall Street Flat as Investors Digest Mixed Earnings 
[2019-10-28 10:15:24] Investors brace for poor U.S. shale earnings amid weak oil and gas prices
[2019-10-28 06:10:24] Small oil-and-gas companies get cold shoulder from large banks
[2019-10-28 04:15:24] Argentina Investors Look Ahead After Fernandez Pulls Out Win
[2019-10-25 15:25:12] Amazon sales forecast, slower AWS growth disappoint investors
[2019-10-25 11:35:11] China regulator says impeding China market access not in U.S....
[2019-10-24 10:45:08] Sizzle Is Off Emerging World’s Hottest Destination for Investors
[2019-10-24 03:05:11] Asian shares edge up; investors anxious over earnings, Brexit
[2019-10-22 21:00:09] Bank of Canada rate cut bets sink as investors eye post-election...
[2019-10-22 18:50:12] Aramco listing was delayed to rope in anchor investors: sources
[2019-10-22 15:40:04] Canadian dollar pulls back from three-month high as investors...
[2019-10-22 13:15:04] Exxon to face trial in New York investor fraud lawsuit
[2019-10-21 13:05:22] Approach of Eskom’s Day of Reckoning Puts Investors on Defensive
[2019-10-21 13:05:22] Investors Turn Defensive as Eskom’s Day of Reckoning Approaches
[2019-10-19 12:15:15] China to further reduce tariffs and remove non-tariff barriers...
[2019-10-18 20:55:12] Lebanon Leader Threatens to Abandon Ship During Largest Protests...
[2019-10-17 16:00:16] ?No Champagne Yet’ as Investors, Analysts Greet Brexit Deal With...
[2019-10-16 23:45:09] Netflix Rallies After Overseas Growth Eases Investor Worries
[2019-10-16 22:45:10] Netflix Jumps Postmarket as Margins, International Subs Cheer...
[2019-10-16 22:40:09] Netflix Jumps Postmarket as Q3 Margins, International Subs Cheer...
[2019-10-16 17:45:08] Fund investors continue largest pullback from U.S. stocks since...
[2019-10-16 15:15:09] Foreign investors buy net C$4.99 billion in Canadian securities in August
[2019-10-15 12:15:03] Global investors bet on defensive equities in deflation plays:...
[2019-10-15 12:10:04] Global investors bet on defensive equities in deflation plays:...
[2019-10-15 11:25:03] German investor sentiment falls less than expected in October
[2019-10-13 10:15:19] Saudi Arabia to launch new logistics zone in Jeddah, open to private investors:...
[2019-10-10 22:25:09] Nonsense Market Moves Have Investors ?Exhausted’ by Trade Talks
[2019-10-10 09:20:10] Investors hold positions on Asian units ahead of high-level trade...
[2019-10-09 19:20:09] Fund investors dump U.S. stocks as recession worries mount
[2019-10-09 14:55:07] Stock Investors Hedged for a Crisis Risk a New ?Pain Trade’
[2019-10-08 19:30:10] After A Powerful Rally In Defensive Stocks, Investors Now Face A Dilemma
[2019-10-08 16:40:04] RBS investors call on new boss Rose to shrink NatWest Markets
[2019-10-08 12:45:04] Russia to keep U.S. investor Calvey under house arrest until...
[2019-10-08 10:05:22] Emerging-Market Investors Don’t Expect an Olive Branch in Trade...