A Month Out From French Vote, Traders Bet on Europe Stock Calm
- VStoxx put volume surges, with traders paying up for options
- Put-to-call ratio of 1.3-to-1 contrasts with 0.4 for VIX
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With the first round of French voting less than a month away, one could be forgiven for betting on an increase in European equity volatility. But the opposite is happening.
A record volume of options wagering on a drop in the VStoxx Index changed hands this month, three times more than contracts positioning for more swings. That’s pushed the number of outstanding puts to calls on the gauge to its highest level since the aftermath of the U.K. vote on European Union membership, when the VStoxx slumped as investors unloaded their protection.