Traders Brace for S&P 500’s Busiest CPI Day Since March 2023
- Options are pricing in 1% move in equities gauge on Wednesday
- Investors are focused on inflation as jobs market is strong
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Options traders whipsawed by the stock market’s recent gyrations are getting anxious that more bouts of volatility may arrive in the coming days, starting with Wednesday’s report on consumer prices.
Soaring bond yields and robust jobs data have put extra focus on the next consumer price index report. The S&P 500 Index is expected to move 1% in either direction on Jan. 15, based on the cost of at-the-money puts and calls, according to Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy. That’s the largest implied move ahead of a CPI print since the regional bank turmoil in March 2023.