Business · Markets · 1 hr ago

Citi strategist sees small-cap options as a play on US inflation data

Small-cap stocks have been in their worst losing streak in years, according to the story.

Stuart Kaiser of Citigroup recommends buying call options on the iShares Russell 2000 exchange-traded fund.

The fund tracks the Russell 2000, an index of small-cap stocks.

A call option gives its buyer the right to buy an investment at a set price.

Kaiser’s recommendation comes before the US consumer-price index for September is released on Wednesday.

The index measures changes in consumer prices and is a key inflation reading.

The release could affect how investors view small-cap stocks, but the story does not say how the data will come in or how markets will respond.

Sources

MarketWatch · 1 hr ago