More investors are betting on a 50 basis point Fed cut this year: Open interest for Secured Overnight Financing Rate (SOFR) call options, which trade on Fed interest rates falling to 3.50% by year-end, jumped to 926,000 contracts, the highest on record. This suggests the market is pricing in a 75 bps of cuts from the current 4.25%. Open interest for SOFR call options on this bet has TRIPLED since July. In other words, investors increasingly expect at least one 50 bps rate cut at either the October or December Fed meeting. Is the Fed set to cut rates more aggressively?(The Kobeissi Letter)