JPMorgan Fund’s Expiring S&P Options Position Draws Market Focus

US equities traders are watching for a pickup in volatility with the quarterly rolloff of a huge options position that’s been serving as a sort of floor for the S&P 500 Index over the past month.

The $21 billion JPMorgan Hedged Equity Fund (JHEQX) — which uses derivatives to protect against declines and volatility — holds tens of thousands of contracts as part of a collar position that expires Monday, to be rolled over to next quarter. It’s an event that grabs the market’s attention every few months.