Investors From Stocks to Crypto Brace for US Election Volatility
(Bloomberg) — Just before a hotly contested US election considered a toss-up, options traders across markets appear to be reducing risk and bracing for more volatility.
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Equity options volatility climbed through most of October even as the market’s swings were muted, in anticipation of not just the upcoming election but also earnings season and a Federal Reserve interest-rate decision. The race between Kamala Harris and Donald Trump is too close to call in the final days before the vote.
Bond yields have been rising since the Fed cut rates in September, leading investors to pull back on some futures positions and add tail-risk hedges on higher rates. For the most part, currency traders are betting on…
