Wall Street: Investor Anxiety and Exchange-Traded Products

wall street: Demand for one-month call options tied to the CBOE Volatility Index VIX, -9.70% has spiked in the past week, suggesting investors may be expecting a selloff in the near term, while money has also poured into the exchange-traded products that aim to track market volatility, according to Market Watch. While Wall Street greeted Trump's victory with enthusiasm his election sparked a rally that took indexes to repeated records the excitement has waned of late. Market anxiety has been rising in anticipation of Friday's inauguration of President-elect Donald Trump, and traders are taking to the instruments that can provide a hedge in volatile times. Indexes have struggled to break out of a recent range, and the VIX, a popular proxy for investor anxiety, has climbed more than 16% thus far this week. Read Trump inauguration set to unleash cascade of stock-market anxiety Volatility-based ETPs typically move inversely to the broader market and investors use them as a form of protection, although they are designed to be short-term holdings. However, at 13.10, it remains well below its long-term average of 20. (news.financializer.com). As reported in the news.

The content, information, trademarks and multimedia posted on this blog copyrights to their original owners and herein blogged in good faith for the purpose of commentary, speech, opinion and debate.

financializer news

A weblog highlighting financial topics making news in the international media.