Wall Street 'stealth hedging' shows investors treading cautiously

With the US stock market at a record high and daily stock gyrations near multi-decade lows, some investors have raised concerns about the lack of fear in the market, but US equity options market data suggests investors are far from complacent.

The positioning of options on S&P 500 index and CBOE Volatility Index shows investors have been gradually adding to hedges over the last few months. "We didn't see it on our desk and no one seems to care much about hedging but somehow it's happening," said Jim Strugger, derivatives.....

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