Following weeks of utter comaplcency, there are signs that investors are beginning to hedge for potential U.S. stock swings around France’s presidential ballot.
As Bloomberg writes, futures on the CBOE Volatility Index
expiring in the next month are now trading around the same level as
contracts maturing a month later.
In fact the VIX term structure briefly inverted on Monday…
“The U.S. options market is finally starting to care about the French elections,” said Pravit Chintawongvanich, head derivatives strategist at Macro Risk Advisors in New York, who recommended positioning with iPath S&P 500 VIX Short-Term Futures ETN options.
via http://ift.tt/2obkXeX Tyler Durden