SentimentEdge report

Jason Goepfert

3-14-2023 at 9:30 am

Small traders are buying puts but not for tail risk

Even with massive volatility in parts of the market in recent weeks, options traders are not pricing in major tail risk. Indicators that reflect this behavior suggest complacency, but in reality, it likely just reflects low equity exposure. Small options traders are still buying a lot of puts, just not in far out-of-the-money contracts.

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