​Daily Bulletin: Monday March 2

The Russell 2000 and Healthcare seem to be popular trades recently as volatility in the broader equity market tracks lower. Heavy listed options trading on the IWM exchange-traded fund was seen Monday, as investors sought to play the inexpensive volatility on the small cap benchmark compared to the SPDR S&P500 ETF, while Volatility buying in general is making a return as implied and realized equity volatility moves lower. In Asia, a cut in interest rates by the People’s Bank of China on Saturday could fuel a similar rally in China shares seen in November, following the central bank’s last rate cut. Despite current high valuations, the cheapness of upside structures is making call spread strategies attractive.