NEW YORK, Oct 15 (Reuters) – Growing concerns about the
economy and markets sent volatility soaring on Wednesday and
pushed trading volume in the U.S. options market to its highest
level in more than three years, as traders moved to hedge their
portfolios on fear of further market gyrations.
The CBOE VIX index – the stock market’s “fear gauge,”
- rose to touch 31.06, its highest level since December 2011,
before pulling back to close at 26.25.
NEW YORK, Oct 13 (Reuters) – Traders in the U.S. equity
options market loaded up on downside protection on Monday by the
greatest margin in more than six years as a third straight day
of steep stock market losses signaled to derivatives players
that there is far more volatility to come.
Trading in puts conveying the right to sell stocks at a set
price in the future exceeded calls that provide a comparable
option to buy them at a later date by a 1.45-to-1 margin. This
so-called put-to-call ratio was the most heavily skewed to puts
since the early days of the financial crisis in March 2008,
according to Interactive Brokers data.