Investors increase VIX index call options, demand rises to the highest level this year

According to Bloomberg, investors are increasing their bets on increased market volatility, as demand for call options on the VIX index, which measures panic in the US stock market, has risen to its highest level this year. Despite the easing of tensions between the United States and Iran and the continued rise in US stocks, the market remains concerned about inflationary pressures and the hawkish stance of the Federal Reserve driving up interest rates. As the S&P 500 approaches historical highs, investors hedge their risks by purchasing volatility products to prevent market downturns.