S&P bull run drives interest in reset and lookback hedges
Variable strike put options proved popular alternative hedging format of 2025
Equity exotics desks have seen a rush of demand for downside hedges whose strikes automatically recalibrate with rising markets, as strong equity gains leave traditional vanilla put options drifting far out-of-the-money before protection is required.
Historically viewed as expensive compared with their vanilla counterparts, resettable and lookback put options have become favoured hedging
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