Trader Bet $65 Million in Options on Stock Rebound Into Holiday
- The transaction involved call spreads linked to the S&P 500
- Stocks retreated ahead of Fed’s announcement Wednesday
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While U.S. stocks fell Tuesday ahead of what’s expected to be a hawkish Federal Reserve policy meeting, one investor just bet $65 million on a quick market rebound.
The trade saw someone purchase roughly 20,000 call spreads that are linked to the S&P 500 and expire right before the Christmas holiday. The transaction involved selling calls with a strike price at 4,750 to fund bullish options exercisable at 4,650. The benchmark slipped 0.8% to 4,634 Tuesday.