With GameStop Corp. in retreat, signs of normalcy emerged on Wall Street. Which in 2021 means traders were free to get back to stressing about SPACs, crypto and all those Faang options still in circulation.
Given the backdrop, it no surprise that volatility futures are refusing to sound the all clear. Contracts on the Cboe Volatility Index showed traders are wagering on an elevated level of price swings all the way through March. In options, the cost of S&P 500 puts rose to a three-year high relative to calls, a sign of caution among options traders.