Trader Adds to Hedge Volatility, VIX Call Options Demand Reaches Highest Level of the Year

BlockBeats News, June 23rd, according to Bloomberg, investors are increasing their bets on heightened market volatility, as demand for VIX call options, a measure of stock market fear, has risen to the highest level this year.

Despite a slight easing of tensions between the U.S. and Iran, and the continuous rise of the U.S. stock market, there are still concerns in the market about persistent inflationary pressures and the hawkish stance of the Federal Reserve potentially driving interest rates higher.

As the S&P 500 nears its historical high, more and more investors are choosing to hedge risks by purchasing volatility products to guard against a market pullback. In other words, while the current market sentiment remains optimistic, institutional funds are quietly buying "insurance" ahead of any potential sharp swings.