Photographer: Joshua Lott/Getty Images

Traders May Just Be Forced to Unwind All Those VIX Bets: Chart

Futures on the Chicago Board Options Exchange Volatility Index have reached an almost four-year high relative to the VIX, making the cost of holding securities betting on stock swings expensive. As a result, traders who went long the products en masse may unwind their positions, Societe Generale SA said in a report last week. Meanwhile, the cost of bearish Standard & Poor’s 500 Index options has fallen to its lowest level since 2014 relative to bullish contracts -- a drop in hedging that’s unusual during a rally, according to the note.

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