VIX Futures Volatility Rises as U.S. Midterm Elections Approach

On August 25, traders in the stock derivatives market are preparing for increased volatility surrounding the upcoming U.S. midterm elections in November. The futures market related to the VIX, or the fear index, indicates a growing demand for hedging against fluctuations in the S&P 500 index before and after the elections. The trading price for VIX futures expiring in September is around 17.4, while October contracts have risen to 19, and November contracts have further increased to 19.7. Matthew Thompson, co-portfolio manager at Little Harbor Advisors, stated that with the elections approaching, the time window for VIX to be affected has opened. Research from the Chicago Board Options Exchange Global Markets shows that since 1945, 80% of midterm election years have seen actual volatility higher than the previous year, with an average increase of 3.5 volatility points. In years when both the White House and Congress are controlled by the same party, actual volatility increases by an average of 6 volatility points.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.