Call options advanced as way to navigate bull market

By Jasper Cox
24 Aug 2020

Investors are doubtful whether the extraordinary stock market rally of the last few months will continue, as they await news of a vaccine, further economic fallout from the pandemic, and the result of the US presidential election. If they want to maintain equity exposure while limiting potential losses, UBS analysts have suggested using call options for certain indices.

UBS predicts that in an “upside” scenario, where a Covid-19 vaccine becomes available by the end of the year and GDP in developed countries returns to pre-pandemic levels by the end of 2021, the S&P 500 could rise from the 3,400 area it is at now to 3,700. ...

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