Investor Election Jitters Starting to Show Up in Stock Options
- S&P 500 options, VIX futures price in volatility around vote
- Biden’s tax policy seen as a big threat to corporate earnings
Photographer: Thomas Werner/Bloomberg
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With U.S. stocks having roared back from the pandemic selloff, it may seem like investors are sanguine about what lies ahead. A closer look, however, shows traders pricing in a lot of risk around election time.
Options investors are piling into hedges against losses around the Nov. 3 presidential vote. The anxiety is laid bare by the premium on S&P 500 contracts that expire around that date.