Navigating Market Chaos During a Debt-Ceiling Fight: Investor Strategies.

With the US Treasury Secretary's "X date" for Congress to raise the federal debt ceiling just two weeks away, some on Wall Street are seeing an opportunity in cheap option contracts that would yield large returns if US stocks sold off like they did during the debt-ceiling drama in Congress in 2011. A team of equity derivative strategists at Bank of America has told clients that S&P 500 index put options expiring in the weeks ahead look "cheap" when considering the high risk for a selloff. Some on Wall Street fear that Congress might only be motivated to strike a deal if markets turn chaotic.