Analysis-Investors cling to crash protection despite sizzling US stock market rally By Reuters
By Saqib Iqbal Ahmed
NEW YORK (Reuters) – Demand for options protection against an equity market crash is rising, even as a post-election rally takes U.S. stocks to record highs.
Worries over the possibility of a contested election dissipated following President-elect Donald Trump’s victory earlier this month, helping the climb to an all-time high. The Cboe Volatility Index, one measure of investor anxiety, closed near a post-election low of 14.10 on Tuesday.
But several barometers gauging uptake for protection against extreme market swings – such as the Nations TailDex Index and Cboe Skew – are picking up. While the rise in these indexes does not necessarily mean investors expect catastrophic events, they suggest elevated caution…
