TOKYO: The Nikkei’s rapid ascent to a 30-year high above the 30,000 mark has stunned many analysts, but some traders say market hedging against call options at that level is the likely reason for the market’s gains.
Based on the size of outstanding call options and moves in the Nikkei during previous episodes of active call option trading, Japan’s benchmark stock index could add another 1,000 to 2,000 points in coming weeks, some traders say.
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