Traders Already Hedging Portfolios 9 Months Ahead of 2024 Election Rematch
• Traders are already paying up to protect portfolios from market volatility related to the November 2024 U.S. presidential election, still 9 months away.
• Demand is shown by October VIX futures rising above 20, indicating increased demand for S&P 500 options expiring the following month.
• The election is expected to feature a rematch between President Biden and former President Trump.
• Demand for volatility hedges ahead of elections has increased with each of the last 4 votes, but is picking up earlier this year.
• Legacy of 2016 election shocks (Brexit & Trump victory) is blamed for investors hedging so far in advance this time.