Fearless Traders Shun Options as Kospi Risk Declines
This article is for subscribers only.
As options traders from the U.S. to Germany and India grow more concerned about a selloff in stocks, they’ve never been so sanguine in South Korea.
The Kospi 200 Volatility Index, the benchmark gauge of demand for protection against swings in Seoul-listed equities, has dropped 7.6 percent in the past three months and reached a record low on April 17, the biggest retreat among 12 options measures tracked by Bloomberg worldwide. That compares with a 9 percent gain in the U.S. and a 100 percent surge in India.