Crash or Soar? Traders Are Preparing for Stock Market xtremes

Options buyers bet on broad equities swings, not minor moves

Traders are quietly picking up tail-risk hedges: instruments that do little if there’s a slight downdraft but offer protection if stocks swing wildly.

There is growing concern that an unpriced risk could knock the bull market off its feet.

Mandy Xu “Still, there’s a lot of concern of potential black swan events

Investors are ready for continued broad market advances and aren’t particularly worried about a slight pullback. They are, however, concerned about a disaster

“But there’s a lot of room between a correction and true tail risk.”

Bloomberg 1 April 2024

https://www.bloomberg.com/news/articles/2024-04-01/crash-or-soar-traders-are-preparing-for-stock-market-extremes


Commercial Real Estate is a Black Swan

https://englundmacro.blogspot.com/2024/02/cre-is-balck-swan.html


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