Business & Finance
VIX Curve ‘Bump’ Shows Stock-Market Anxiety Growing by Midterms
Key Points
VIX Curve ‘Bump’ Shows Stock-Market Anxiety Growing by Midterms While Nvidia Corp.’s upcoming earnings and Federal Reserve Chairman Kevin Warsh’s speech in Jackson Hole are the main events for investors this week, traders in the equity derivatives markets are already bracing for a potential uptick in volatility around the US midterm elections in November. Vol traders who keep a careful eye on the futures market tied to the Cboe Volatility Index, or VIX, are pointing to signs of increased...
VIX Curve ‘Bump’ Shows Stock-Market Anxiety Growing by Midterms
While Nvidia Corp.’s upcoming earnings and Federal Reserve Chairman Kevin Warsh’s speech in Jackson Hole are the main events for investors this week, traders in the equity derivatives markets are already bracing for a potential uptick in volatility around the US midterm elections in November.
Vol traders who keep a careful eye on the futures market tied to the Cboe Volatility Index, or VIX, are pointing to signs of increased demand to hedge swings in the S&P 500 around the time of the elections. VIX futures expiring in September are trading for around 17.4, but jump to 19 for October and 19.7 for November.