Options Gamma and the Trump Trade Peril for Volatility Funds
- Bets on calm market fall flat as rally pushes equities higher
- Selling volaility a popular strategy in low-yield environment
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Bet on peace and quiet under Donald Trump? You lost.
It’s true in Washington and it’s increasingly true in markets, where one hedge fund trade -- that prices will sit still -- showed cracks this week. Blame it on the rally that added $500 billion to U.S. equity prices in five days, lifting the S&P 500 to successive records.