Traders are aggressively buying VIX call options! Strategists warn: it may become an important driver of volatility in the US stock market

Zhitong
2025.02.20 10:44
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Strategists warn that investors buying VIX call options to hedge against stock market risks may lead to market instability. Data shows that the trading volume of VIX call options has exceeded 1 million contracts, and traders need to prepare for rising volatility. Although the market has not yet experienced extreme fluctuations, strategists believe that the current position distribution could trigger a chain reaction, and if VIX rebounds close to the expiration date, volatility may surge again. Meanwhile, investors remain bullish on U.S. stocks, but market participants are becoming saturated, and the motivation to buy on dips is weakening