There's Been a Big Spike in the Cost of Protecting Against a Market CrashBy
While the CBOE Volatility Index remains near its lowest level since July 2014, a gauge tracking the cost of out-of-the money S&P 500 Index options jumped to levels last seen in June with the Brexit vote. The CBOE SKEW Index has climbed 8.3 percent this year and hit a high on Friday, as Donald Trump took over as U.S. president. Investors are hedging amid political uncertainty and tighter monetary policy, according to Michael Sandberg, an equity and derivatives sales trader at Lombard Forte Securities in Dubai.
— With assistance by Alastair Marsh