Paring Risk Before the Election

Often, political shifts don't have the market implications many project, as the 2016 presidential result showed. [...]outcomes can be wide-ranging and tough to forecast. [...]futures contracts tracking the Cboe Volatility Index, or VIX, that expire in October have jumped relatively high, compar...

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Bibliographic Details
Published in:Barron's 2018-10, Vol.98 (40), p.M11-M11
Main Author: Banerji, Gunjan
Format: Article
Language:English
Subjects:
Equity
Investments
Options markets
Put & call options
Stock market indexes
Stocks
Volatility
Online Access:Get full text
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Summary:Often, political shifts don't have the market implications many project, as the 2016 presidential result showed. [...]outcomes can be wide-ranging and tough to forecast. [...]futures contracts tracking the Cboe Volatility Index, or VIX, that expire in October have jumped relatively high, compared with the so-called fear gauge's level over the past week, reflecting anxiety ahead of the voting, says Pravit Chintawongvanich, an equity derivatives strategist at Wells Fargo Securities, in a Sept. 25 note. A rise in Treasury yields helped push stocks into a tailspin earlier this year, but the recent move higher for government bond yields-and the accompanying fall in prices-hasn't precipitated the same crossasset swings.
ISSN:1077-8039