Volatility Traders Revel in S&P 500’s Wild Tariff-Driven Swings
- Zero-day to expiry option volume takes a record share in Feb.
- Intraday swings are the largest since August volatility shock
The Cboe Volatility Index rose above 26 intraday last week, a level rarely seen since the Covid era of 2020-2022.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Options traders who thrive on volatility are loving the market turbulence sparked by President Donald Trump’s trade fights.
As stocks ground higher in 2024, Kris McConnell used to wake up at 3 a.m. to make money off higher volatility during overnight sessions. But with the market swinging wildly this year, the 56-year-old Las Vegas-based day trader is raking in 80% more than he did last year. Plus, now he can hit the snooze button on his alarm clock.