Options Traders Flock to Wager That Fed Won't Cut Interest Rates
A contrarian wager that the Federal Reserve won't cut interest rates this year is exploding in the options market.
The position takes the form of a put option — entitling the holder to sell at a specific price during a defined time window — on the December 2025 futures contract for the Secured Overnight Financing Rate, which closely tracks the rate set by the Fed. The specified price — 95.6875 — is lower than the current futures price, which anticipates close to three quarter-point rate cuts by year-end.
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