Dormant VIX Belies Options Bonanza for Bets on Earnings Swings
- U.S. companies with active options have seen high volatility
- S&P 500 pushed aside geopolitical turmoil to reach records
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Below the surface of the calmest stock market in two years lurks some of the highest earnings-related volatility of the past few decades.
Since quarterly reports began last week, an options strategy that profits from a large stock move in either direction has seen returns that are more than 10 times higher than the 20-year average, according to data compiled by Goldman Sachs Group Inc.