Posted 10/20/2023, 9:26:00 AM
$2.5 Trillion in Options Expiring Friday Could Fuel Volatility Amid High VIX Levels and Rising Treasury Yields
- $2.5 trillion in stock options tied to S&P 500, ETFs, and futures set to expire on Friday
- Options expirations typically lead to volatile trading, and high VIX levels could exacerbate moves
- Rising popularity of short volatility strategies like selling options is circulating more premium
- Inflows into JPMorgan's JEPI covered call ETF have surged as investors embrace that strategy
- Stocks sold off Thursday amid high VIX and spiking 10-year Treasury yields hitting 16-year highs
