Traders have been loading up on call options in the Cboe Volatility Index, AKA the VIX or "fear gauge," wagering on big price swings in the market.
The fear gauge jumped the most since May to 16.12 on Wednesday after Fed chief Jerome Powell took the podium at a news conference and said the rate cut was a "midcycle adjustment."
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CNBC propaganda.
I don’t quite understand this article. If traders are bearish, why is there a spike in buying calls? Wouldn’t they be buying puts?
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