S&P Election-Week Options Imply Greater Chance of Big Move Lower

Investors trying to gauge the sentiment toward equities around the US presidential election can now look directly at S&P 500 Index options linked to the period of the vote, in addition to Cboe Volatility Index futures.

For months, there’s been a persistent premium for October VIX futures, signaling expectations for heightened volatility in stocks in the wake of Election Day on Nov. 5. As of a couple weeks ago, traders can also monitor S&P 500 options for that period, and those are pricing in a greater chance of a large move following the vote.