Biden Poll Lead Dents Case for Costly Election Volatility Trades
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The possibility of a decisive election victory by Joe Biden and the Democratic Party is chipping away at the cost of hedges against market turbulence surrounding the vote.
The spread between December futures linked to the Cboe Volatility Index and their November counterparts -- a proxy for fears about a contested or delayed result -- has fallen from its early September high. Biden leads by almost 10 percentage points in the latest RealClearPolitics average of polls amid speculation about a Democratic sweep of Congress, a contrast to previous concerns about a tight contest.