The wild swings led by oil since the start of the Iran war have institutional investors turning to exotic hybrid options to trade cross-market gyrations.
Oil prices swung almost $36 a barrel on March 9, the biggest one-day range on record, triggering sharp intraday reversals in assets from stocks and bonds to gold and the dollar. Implied volatility measures spiked as traders sought cover from massive swings.
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Turning to bonds and gold for protection from soaring crude prices hasn’t worked as stagflation concerns have gripped markets. A protracted shutdown ...