ETF Wrap: ETFs are increasingly ‘mainstream for fast money’ amid rise in options activity tied to exposures in stocks, bonds

by | Feb 16, 2023 | Stock Market

Hi! This week’s ETF Wrap looks at the jump in options contracts tied to exchange-traded funds such as the SPDR S&P 500 ETF Trust. Please send feedback and tips to You can also follow me on Twitter at @cidzelis and find me on LinkedIn. Sign up here for our weekly ETF Wrap.

Options activity surrounding exchange-traded funds has jumped, as the ETF market evolves to increasingly attract investors engaging in short-term trading strategies or to express their views on stocks and bonds, according to research from Citigroup. “I feel like the macro is driving a lot of this,” said Drew Pettit, director of ETF analysis and strategy in Citigroup’s research business, in a phone interview. “Macro” drivers might include economic data on inflation as well as statements from the Federal Reserve, he said.  Activity in options contracts tied to ETFs picked up in 2020 amid the market volat …

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