Funds Trade Outperformance Hedge On Israel/Iran Concerns

19 Sep 2012

Hedge funds are buying outperformance options on WTI Crude Oil against the S&P 500 as a hedge against a potential strike by Israel against Iranian nuclear installations.

Hedge funds are buying outperformance options on WTI Crude Oil against the S&P 500 as a hedge against a potential strike by Israel against Iranian nuclear installations.

Outperformance options, which are considered an exotic call option strategy, benefit from the amount that one underlying outperforms the other. Should ...

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