Stock Investors Are Finally Starting to Buy Hedges Again
- CBOE put-call ratio spikes to highest since before election
- VIX skew near lowest in 10 months, signaling gauge to climb
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With the U.S. equity market waking from its slumber, investors are finally taking the hint to hedge their post-election gains.
The CBOE Volatility Index is coming off its biggest one-day rise since Nov. 3 and a separate measure of bearish bets relative to bullish ones has surged to the highest since President Donald Trump’s victory, according to Bloomberg data. It’s a departure from the tranquility in U.S. equities during the weeks following the election, a period in which the VIX fell to a 2 1/2-year low.