Traders consider longer-term options to hedge against market volatility post-tariffs.

From Yahoo Finance: 2025-05-11 09:00:00

Traders are navigating calmer markets post-April’s volatility storm, but the risk of new headline shocks looms. The debate centers on short-term options benefiting from intraday moves versus longer-term contracts for seismic market shifts. While April saw short-term options prevail, strategists are eyeing longer-dated contracts as stocks rally. Tariff impacts on volatility may diminish, prompting investors to consider equity downside plays while remaining short or neutral volatility. Amid market uncertainty, alternatives like volatility knock-out puts offer cheaper speculative bets for hedge funds. Costs for hedging have fallen to late March levels, providing relief for hedgers.



Read more at Yahoo Finance: Traders Eye Longer-Term Options to Hedge Post-Tariff Shock Rally