Options traders are bracing for wild stock-market swings as Trump keeps investors guessing on Iran

Record positioning in S&P 500 options has emerged with simultaneous extremes in long calls and short puts, indicating traders are hedging for large swings in both directions. This bifurcated exposure raises the risk of elevated volatility and asymmetric moves if positions are re-priced or unwound; monitor implied volatility, gamma exposure, and net put-call flows closely.

Analysis

Record positioning in S&P 500 options has emerged with simultaneous extremes in long calls and short puts, indicating traders are hedging for large swings in both directions. This bifurcated exposure raises the risk of elevated volatility and asymmetric moves if positions are re-priced or unwound; monitor implied volatility, gamma exposure, and net put-call flows closely.