Zero-Day S&P 500 Option Traders Shift Bets Away From Record Highs
· Business · Bloomberg, MarketWatch
Zero-day option traders on the CBOE have reduced bullish bets on the S&P 500 as the index slides from record levels, reflecting increased hedging against sharp market swings. With the index down over two percent from its peak, traders are pricing in heightened volatility driven by upcoming AI earnings and macroeconomic uncertainty. Volume in zero-expiry contracts has surged while open interest in standard options declines, signalling a tactical pivot. The CBOE Equity Volume Report confirms this shift as market participants reposition ahead of key rate decisions.
Why it matters
Retail and institutional investors face amplified portfolio risk as zero-day options magnify daily S&P 500 moves, potentially triggering wider swings in mutual funds and pension holdings tied to the index.
Read the original report — Bloomberg
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.