Bearish Bets on India Banks Climb to 8-Week High as Stocks Rally
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Investors trading in Indian bank options are buying the most protection in eight weeks as a gauge of lenders’ shares rallied to a record high for a fourth straight day.
The number of outstanding puts per call in the 12-member CNX Bank Nifty index rose to 1.67 at 4:20 p.m. in Mumbai, the most since Nov. 24. The underlying Bank Nifty, the second-most popular security for derivatives trading in India after the 50-stock CNX Nifty Index, climbed 0.4 percent to 19,917.65 to close at an all-time high. A put with a strike price of 19,000, which may become profitable for a buyer below that price level, was the most active among its options by outstanding contracts.