Options Traders Unwind Bullish US Stock Wagers on Rate Concerns.

Options traders are unwinding bullish wagers on US stocks due to concerns about slower interest rate cuts, halting the stock rally that followed the presidential election. Traders who bought puts on the Cboe Volatility Index are seeing payoffs as volatility decreases. The focus has shifted to interest rates, earnings, and the new administration, leading to a 2.1% loss in the S&P 500 Index last week. Investors are reducing exposure to big tech stocks and making speculative bets on biotech and consumer staple food stocks in response to uncertainty surrounding the new administration's policies. [Extracted from the article]