Delta hedging is a risk management strategy used to reduce or neutralize the price movements of an underlying asset in options trading. By adjusting the positions in the underlying asset to match the ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...

US swaption investors are paying a steep premium for receiver swaptions as market participants hedge against the possibility of a dramatic drop in interest rates. The options market is pricing in tail ...

A swaption, also known as a swap option, refers to an option to enter into an interest rate swap or some other type of swap. In exchange for an option's premium, the buyer gains the right but not the ...

NEW YORK, Nov 26 (Reuters) - Conflicting signals from the Federal Reserve on the timing and magnitude of U.S. interest rate cuts have accelerated hedging flows into swaptions and derivatives tied to ...