Options traders in the U.S. stock market are getting their
bets in place in case the U.S. economy tumbles down the "fiscal
cliff," or worse, if the U.S. presidential election is so close that the
result is disputed, the good folks at Reuters report.
The stock market has been relatively calm in recent weeks in
the face of uncertainty over the November 6 election and concerns that the
economy could be pitched into a new recession because of substantial tax rises
and government spending cuts - the so-called fiscal cliff - due to hit early
next year unless Congress agrees to cancel or delay them.
Some option traders already are starting to build up
protective positions on these big risks. In an environment of subdued
volatility, the cost of doing so is relatively low, making it advantageous to
take out insurance in case Washington remains gridlocked for an extended period
after the election and the markets are roiled.
According to InTrade, current odds show President Barack Obama will be
re-elected. However, expectations are…..
Find out the rest at http://www.reuters.com/article/2012/10/07/us-options-election-idUSBRE8960IQ20121007
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