Still, some options strategists see the drop in options prices as an opportunity to take on inexpensive positions.
“The European situation has to weigh on the market right now,” TD Ameritrade chief derivatives strategist Joe Kinahan said in the WSJ article. “It’s not like all of a sudden there was a wand wave and the situation is over. … In the first week of the new year, it’s going to be staring us right in the face again.”
iPath S&P 500 VIX Short-Term Futures ETN
For more information on market volatility, visit our volatility category.
Max Chen contributed to this article.