The stock exchange is somehow similar to weather forecasts. You never know what’s going to happen but it’s better to plan ahead and be prepared if a disaster strikes.
This is exactly what investors are doing right now as many fear a total election apocalypse. The left, the right, and the center are all worried about highly unstable electoral outcomes a year from now.close
Yes, investors are putting a premium on the price of buying downside puts, meaning a negative bet on the S&P 500 is at a historical level compared to the price for upside calls, or an opposite bet in the options markets for higher prices.
Why Are Investors Putting a Premium on S&P 500 Puts a Year Before the U.S. Election?
Stock investors are scared about the election outcomes. They fear a stock crash and thus are buying premiums for downside puts – negative bet on the S&P 500.
And it’s unclear which way investors see the election results… But the left, the right and the center are all worried about highly unstable electoral outcomes.
Stock exchange specialists analyze that new situation saying: “To hedge out past the election, the price of downside puts relative to upside calls is literally pricing an election apocalypse. We have said it forecasts either a less business-friendly attitude or a civilizational conflict with China after the election.”
Anyhow, if the hedging was for a month out it would not be that unusual. But when you’re pricing an option a year out, that volatility is a big deal. It’s an unprecedented apprehension.
What do Investors Fear After Next Year Election?
On the one hand, those fearing a less business-friendly environment could be hedging against a Democrat win (Sen. Elizabeth Warren or Sen. Bernie Sanders).
On the other hand, investors could fear President Donald Trump’s trade war with China will continue and get worse after the election.
Stock analysts say investors are placing bets on the election early, in this presidential cycle, relative to other years. Some sectors are also moving ahead of the election, i.e. health care.
Fear is in the air, in the whisper of the trees, fear is in the air, in the thunder of the sea! Be ready for the big crash… It’s happening right now in front of our eyes. Food prices are increasing, major pandemics and earth changes costs increase every year and major indicators show we are heading to a recession. Follow Strange Sounds and Steve Quayle for more catastrophic headlines. Source: By Strange Sounds
StevieRay Hansen
Editor, Bankster Crime
“debtors are hostage to their creditors.”
MY MISSION IS NOT TO CONVINCE YOU, ONLY TO INFORM YOU…
The Birth Pains Are Growing Stronger….
“Unless God has raised you up for this very thing, you will be worn out by the opposition of man and devils”…
My name is Steve Meyers and I need to share a vision and warning that the Lord showed me back in April 2007…
Many of you will ask why I waited so long to share the warning. I didn’t. I shared the story with everyone that would listen from pastors to friends to family to colleagues. Immediately following the initial vision, I called a close friend. I told him to sit down that I had something to tell him. I needed it documented as I knew this was supernatural and from God. As I witness events unfolding today, I need to share the vision again.
The risk of loss in trading futures and options on futures can be substantial. The author does not guarantee the accuracy of the above information, although it is believed that the sources are reliable and the information accurate. The author assumes no liability or responsibility for direct or indirect, special, consequential or incidental damages or for any other damages relating or arising out of any action taken as a result of any information or advice contained in this commentary. The author disclaims any express or implied liability or responsibility for any action taken, which is solely at the liability and responsibility of the user. Steve Meyers, StevieRay Hansen
People’s hearts are troubled, their minds are in a state of confusion, the Bible tells us a time of great delusion that will come upon the people, that time has arrived, the politicians must come up with more significant and more believable lies in order to bring on the antichrist, we have entered the doorstep Tribulation.
“Unless God has raised you up for this very thing, you will be worn out by the opposition of man and devils”…
Source: HNewsWire Bankster ZeroHedge
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