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The Nexus
BUSINESSMay 7 · 13:18 UTCCNBC TOP

This 'win-win' hedge trade is getting popular with traders

Traders are using a hedge trade strategy that involves selling downside protection in semiconductor stocks and buying it in the S&P 500 index. This trade is considered a 'win-win' due to the price difference of volatility between the two markets. The strategy takes advantage of expensive volatility in semiconductor names and relatively cheap volatility in the S&P 500.

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