Some options data reflect views of impending volatility – Goldman By Reuters – Investing.com

Some options data reflect views of impending volatility – Goldman By Reuters – Investing.com

NEW YORK (Reuters) - While major U.S. stock indexes reach new highs, options data suggests traders see the market as vulnerable to a big drop should bears gain the upper hand, according to strategists at Goldman Sachs (NYSE:).

Apparent calm in the stock market masks heightened expectations for big stock market gyrations over the next three months, Goldman strategists said in a note on Friday.

One indication of how anxious investors are is the fact that the 3-month downside implied volatility skew, which compares put option prices with at-the-money option prices, has reached new all-time highs, the note said.