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Wall Street Binges on Volatility Hedges as Stocks Hit Records

  • Options show elevated demand for protection over months ahead
  • Investors shift from bonds to vol as hedging strategy: Eisler

U.S. stocks at fresh records belie new warnings under the surface of Wall Street’s volatility complex.

In the aftermath of last week’s Federal Reserve meeting, options traders are bidding up the price of contracts that guard against market drops, fueling a metric known as skew.