Fed Spurring Hedges in U.S. Stocks as Call Index Drops: Options

U.S. Stocks Are on the Rebound

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As the bull market in U.S. equities enters its seventh year, options traders are loading up on contracts to protect against losses if the rally loses steam.

The ISE Sentiment Index, which tracks the number of calls traded relative to puts, touched the lowest level since June 2013 last week after a surge in hiring fueled speculation the Federal Reserve will raise borrowing costs this year.