Traders Rush to Hedge Against Extreme Market Events After Manic Monday
- Options shows strong demand for tail-risk protection in S&P
- Renewed bout of volatility hits markets Monday as stocks slide
Stock market information displayed at the Nasdaq MarketSite in New York on Monday.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Traders are rushing to insure their portfolios against an extreme market crash, in an echo of the chaotic period at the start of the pandemic.
As the fear factor mounted on trading desks across Wall Street on Monday, the Cambria Tail Risk ETF (ticker TAIL), an actively managed exchange-traded tail-risk fund, jumped 4.5% for its best day since March 2020.