Put warrants to hedge against market’s short-term panic mode

▪️ Global equities are in a risk-off mood, with the S&P500 and Nasdaq down 1.4% and 2.4% respectively to erase gains from Wednesday night, while Asian indices are trading in a sea of red led by losses in the Nikkei 225 which is down 4.6% as of 918AM. Consequently, put warrants are amongst this morning’s top warrant gainers:

▪️ The risk-off mood is driven by concerns that the US central bank may be too slow in cutting rates given the latest US unemployment data, and worries that Japan’s central bank may raise rates again as soon as October after this week’s hike.

▪️ Investors concerned about the short-term downside risks in the markets may wish to consider using put warrants to hedge. Put warrants generally move higher when the underlying they track fall.