Trump Aides’ Confusion Mimicked by Bond, Stock Options Gauges
- Skew suggests equity investors see little chance of event risk
- Treasury options’ skew turns negative, showing calls are bid
The Market Conundrum of Volatility and Uncertainty
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President Donald Trump’s aides aren’t the only ones offering conflicting interpretations. The markets are as well.
While options investors in the U.S. are expressing risk-on sentiment, traders in Treasuries are beginning to sense a risk-off move may be round the corner.