Reported about 8 hours ago
Options traders are grappling with the stock market's subdued reaction to escalating geopolitical tensions, particularly after the US attacked Iranian nuclear sites. They are caught between the decision to sell volatility and risk losses if the situation escalates or to buy volatility and face premium decay as market movements remain muted. Despite the oil market reacting sharply with an 11% surge following Israeli airstrikes, equities like the S&P 500 index show only a slight decline. This inconsistency is causing uncertainty among traders as they navigate a complex environment with implications for inflation and Federal Reserve policies.
Source: YAHOO