With gold set to post negative year-over-year returns for the first time in 13 years, many traders are positioning themselves for an uncertain 2014. Amidst such volatility a trader must be very conscious of risk, and options are a vehicle to do that.
U.S. stocks fluctuated, after the Standard & Poor’s 500 Index had its biggest loss in a month, as investors weighed whether improving economic data will prompt the Federal Reserve to cut stimulus next week.
Crude options volatility rose as futures slipped below a $100 a barrel amid rising stockpiles. Implied volatility for at-the-money December options was 19.79% at 2:20 p.m. on the New York Mercantile Exchange, from 19.06% on Oct. 18.