While Draghi Starts QE, German Stocks Remain a Favorite

Bulls are betting that the best start to a year since 1975 for German stocks has more to go.

With the European Central Bank buying its first government bonds to shore up the region’s economy, options traders are showing little concern that the DAX Index might decline. Implied volatility is at its cheapest relative to historical volatility in three years. In other words, hedging costs are cheap.