Wall Street Opts for Vanilla Options Over VIX for Hedging

Reported about 16 hours ago

As the stock market reacts positively to expectations of an interest rate cut by the Federal Reserve, investors are shifting their hedging strategies. Many are steering away from VIX options, which are currently seen as expensive, and are favoring vanilla puts or put spreads on the S&P 500 Index as a more reliable option. Analysts note that with increased volatility and significant investor activity in long VIX exchange-traded products, the dynamics of the market are changing, leading to a preference for traditional hedging methods ahead of critical upcoming earnings reports, particularly Nvidia's.

Source: YAHOO

View details

You may also interested in these wikis

Back to all Wikis