Reported 5 months ago
In a bullish market without significant fluctuations, cautious investors are struggling to effectively hedge their positions as traditional options like buying put options have not been paying off. Volatility sellers have driven the VIX Index to its lowest level since 2019, and the S&P 500 Index has not seen a 2% drop in over 300 days. Some investors have turned to alternative assets like US regional banks, small caps, and retail stocks for short selling, but these strategies have not been successful. As a result, investors are resorting to blunter hedging instruments such as futures and ETFs, which provide less leverage but do not decay in value like options.
Source: YAHOO