With the volatility of April gradually becoming a distant memory, traders now find themselves navigating relatively calm markets while remaining vigilant against potential headline-driven shocks. A consensus among derivatives strategists entering 2025 suggested that while regular option selling by income ETFs and other funds would generally keep volatility in check, there would still be occasional short-term disruptions. This perspective seems accurate following the April 2 tariff-related selloff, which caused the Cboe Volatility Index to spike before reversing. Traders are now focusing on longer-term options to hedge against any future market fluctuations.
— new from Bloomberg.com
