Geopolitical tensions prompt traders to buy options for protection

From Yahoo Finance: 2025-06-15 12:17:00

Israel’s air strikes on Iran and Iran’s retaliation caused market ripples, prompting traders to seek protection through options. Tensions led to oil price speculation, with traders rushing to buy bullish call options. The geopolitical turmoil shifted oil market dynamics, impacting WTI calendar spread options. Gold prices rose as investors sought risk-off assets amid escalating geopolitics. Equity markets saw increased volatility, but volatility related to geopolitical events tends to fade quickly. The US dollar’s decline showed signs of slowing before the attack, with geopolitical risk adding to existing economic uncertainties.



Read more at Yahoo Finance: Traders Dive Into Options Market as Geopolitical Risk Flares