Opinion: Investors increase exposure to stocks and cryptocurrencies in preparation for US election volatility

Odaily Planet Daily Report: Daniel Kirsch, head of options at Piper Sandler & Co., said, "We continue to see increased interest in trading around the U.S. election, which has picked up in recent days. Clients betting on a Trump victory are increasing their exposure to financial and cryptocurrency stocks, while clients betting on a Harris win are buying options on renewable energy stocks. Hedging has also increased, with traders buying put options on the S&P 500 index and the QQQ ETF." The short-term implied volatility of the S&P 500 has remained elevated relative to the one-month level, as the impact of the election and the Fed's rate hike has seeped into the calculation of short-term indicators. The Cboe VVIX index, which measures VIX volatility, is also at a high level. Zhiwei , portfolio manager at Penn Mutual Asset Management, said, "Currently, the options skew is very large, and the VIX is much higher than the actual volatility. These signs indicate that the market's hedging measures are in place." (Bloomberg)