Traders wary of going back to all-in on stocks weigh up options


FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 24, 2024. REUTERS/Brendan McDermid/File Photo

NEW YORK: After one of the wildest weeks in recent market history, the S&P 500 Index posted both its biggest one-day slump and best rebound since 2022, traders could be forgiven for not wanting to jump back in fully into stocks. Some are now are looking into options.

Risk reversals and call spreads, strategies that involve buying a contract while selling another, are known for providing a cheaper way to bet on market direction.

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