Traders trying to revive a favorite options trade were stopped in their tracks Thursday as Janet Yellen’s cautious words on emerging markets whipped up another round of volatility in U.S. stocks.
On the brink of posting its biggest three-day gain ever, a security designed to rise as equity market turbulence dissipates plunged almost 10 percent in the final hours of yesterday’s session. The reversal came as swings in the Chicago Board Options Exchange Volatility Index quickened, with the gauge crossing the unchanged level 30 times after 2 p.m.
