Swiss Stock Traders Are Hedging Like It's 1998 as Rally Fizzles
- June has been the weakest month for SMI in past 10 years
- Investors have been boosting bearish options bets on the index
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This year’s rally in Swiss stocks is waning, and traders are preparing for tougher days ahead.
As the Swiss Market Index heads for one of the biggest declines among developed markets this month, the number of bearish options on the gauge has climbed to its highest level since 1998 versus bullish ones. At the same time, the cost of the contracts has reached its highest since January 2015 relative to those on the Euro Stoxx 50 Index.