Epic Stock Lull Spurs Volatility Sales Before $1.7 Trillion Test
- S&P 500 set for narrowest quarterly trading range in decades
- Friday’s option expiry may open door for market to break out
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The historic lull in the equity market has revived a controversial strategy of selling volatility. Though one calming factor is likely to fade as Friday’s options expiration risks creating fresh turmoil for traders.
Big benchmark swings have been missing of late as defensively positioned investors digest conflicting economic news and the US debt ceiling drama from the sidelines. The S&P 500 has posted daily moves of less than 1% in all but six of the past 33 sessions.