Hedge Fund VIX Positions Double in Bet Stock Turbulence to Last
- Speculators double long holdings in U.S. volatilty futures
- Cost of options protection on S&P 500 jumps to all-time high
How Volatility Forces Changes to Investors' Strategies
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Now that turbulence has resurfaced in the stock market, the biggest traders are piling into bets that it’s going to last.
Hedge funds and other large speculators just doubled wagers that U.S. equity volatility will increase, a week after pushing them to a record, according to data from the U.S. Commodity Futures Trading Commission released Sept. 4. Prices for bearish options on the Standard & Poor’s 500 Index are also near an all-time high as investors give up on two years’ of bets that calm will prevail in American stocks.