‘Not a Chance Hormuz Opens’: How Wall Street’s new NACHO trade bets on a prolonged oil shock

Traders are embracing the “NACHO” trade, a new Wall Street acronym for "Not A Chance Hormuz Opens." as investors grow skeptical the Strait of Hormuz crisis will end soon. Maica | Istock | Move over TACO trade. Traders now have a new acronym for a market increasingly skeptical that the Strait of Hormuz crisis will end anytime soon: NACHO. The shorthand "Not A Chance Hormuz Opens" has emerged on trading desks and among market commentators to describe growing skepticism that repeated remarks by U.S. President Donald Trump about reopening the key shipping route will lead to a swift resolution. "It's essentially the market losing hope in the chance of a quick fix," eToro market analyst Zavier Wong told CNBC. "For most of this crisis, every ceasefire headline triggered a sharp selloff in oil, and traders kept pricing in a resolution that never came. NACHO is an acknowledgment that higher oil isn't a temporary shock to trade around, it's the current market environment." As recently as Thursday, the U.S. and Iran exchanged fire in the Strait of Hormuz, with both sides accusing the other of starting the confrontation. The renewed hostilities further imperil the two countries' ceasefire agreement, which had already been strained by repeated accusations of violations. …