Betting against the market with a bold move of 25 million US dollars! Mysterious options trader bets that the Federal Reserve will not cut interest rates within the year.
The Wisdom Financial APP learned that a reverse bet on the Federal Reserve not cutting interest rates this year is causing a frenzy in the options market. This position takes the form of put options - holders have the right to sell at a specific price in the December 2025 secured overnight financing rate futures contract within a specified time frame. This futures contract is closely related to the interest rate set by the Federal Reserve. The strike price is 95.6875, lower than the current option price - which expects interest rates to be cut by nearly three times 25 basis points by the end of the year. When the option price falls towards the strike price, the value of the option will rise, if there is no longer an expectation of a rate cut, this will happen.
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