Record Highs Meet Heavy Hedging as Traders Bet on a Pullback in SPY
U.S. equities pushed to fresh record territory on Tuesday, but a large bearish options trade in the State Street SPDR S&P 500 ETF Trust signaled that not everyone is convinced the rally can extend without interruption. Roughly an hour after the opening bell, a trader executed a 100,000-lot put spread in SPY, a move that suggests protection against, or speculation on, a near-term decline even as the broader market remains buoyant.
