Skip to content
Subscriber Only

Options Traders Bet on Tighter Trading Ranges as Earnings Loom

  • Volatility is rising while markets remain in a tight range
  • Strategies lean bullish but with limited room for more gains
Market Reaction Inside The Euronext NV Stock Exchange
Photographer: Yuriko Nakao/Bloomberg

Rising volatility with U.S. stocks near record highs has created opportunities for options investors.

“Fear of Missing Out” trades have been accelerating over the past few weeks, Susquehanna derivatives strategists Chris Murphy and Chris Jacobson said in recent notes to clients. The strategy plays on expectations for shares to trade in a range and uses the sale of downside puts to finance the purchase of call spreads.