“The drop in volatility has made it cheaper to hedge against future gyrations in stocks, prompting some investors to swoop in and buy protection on the cheap, said Garrett DeSimone, head of quantitative research at OptionMetrics.

‘This is a type of environment where volatility is cheap and to buy such hedges makes sense for a lot of institutional investors,’ said DeSimone.”

For more insight on US stock market gyrations from OptionMetrics’ Head Quant Garrett DeSimone, Ph.D., read the full Reuters article, “Options hedges against a break in US stock market calm at record high,” below.