Reported 13 days ago
In the wake of the US presidential election, stock-market volatility has decreased faster than expected, prompting options traders to shift their positions towards an anticipated rally. With clear election results, the demand for hedging has dropped significantly, leading to a decline in implied volatility across various contracts. Market confidence appears to be rising, as evidenced by a surge in equity investments, although there is a warning about the potential risks associated with increasing asset prices that may become overbought.
Source: YAHOO