Frenzy of Volatility Bets Underpin Lowest VIX Since 2007
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Below the stock market’s placid surface, a battle is raging over how long the calm will last.
Hedge funds and other speculators have pushed long and short positions in futures tied to the Chicago Board Options Exchange Volatility Index to record highs, according to data compiled by Bloomberg. In listed contracts, demand for protection should the bull market falter has sent the price of bearish puts to a 15-year high relative to calls.