Investors who have just recorded profits from one of the stronger first quarters For the S&P 500 Index in decades they are preparing for what comes next, whether stocks rise higher or plummet again.
With the stock market at an all-time high entering the second quarter, indications of what traders are thinking are found in the options market. Demand for puts that pay off if there is a minor correction is the lowest it has been in years. Meanwhile, traders are quietly adopting tail risk hedges: instruments that do little if there is a slight downdraft but offer protection if stocks swing wildly.
