Traders whipsawed by the stock market’s gyrations are bracing for more bouts of volatility in the coming sessions, starting with Thursday’s report on US jobless claims.
The options market is implying the S&P 500 Index will move 1.2% in either direction that day, based on the cost of at-the-money puts and calls, said Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy. Should that pricing remain in place by Wednesday’s close, it would be in line with the implied move for Aug. 14 — the next reading on consumer prices — and Aug. 29, the day after Nvidia Corp.’s earnings report.
