"Traders Brace for $2.5 Trillion Options Expiry as Wall Street's 'Fear Gauge' Surges"

Wall Street's fear gauge, the Vix, reached a six-month high as stock options tied to $2.5 trillion in market value are set to expire, potentially leading to increased volatility in the stock market. Of the $2.5 trillion, $1.7 trillion worth are linked to the S&P 500. Large option expiration days often result in heightened trading activity and intraday volatility. The rising Vix has made this expiration particularly significant, with some investors closely monitoring the event. While a rising Vix may indicate more market pain ahead, it also benefits option-selling strategies. Additionally, the popularity of shorting volatility and selling covered calls has increased this year. Rising Treasury yields are also causing concern among traders, with U.S. stocks selling off as the 10-year Treasury yield approached 5%.