"Preparing for Stock Market Extremes: Traders and Investors Brace for Volatility"
Traders are preparing for potential extremes in the stock market, with demand for put options at a low but increasing interest in tail-risk hedges. Despite concerns about unpriced risks, the market remains confident in a soft landing scenario, with a focus on small-cap stocks and less-loved market sectors. Retail investors are showing bullish options market positioning, while concerns about potential black swan events and interest rate cuts from the Fed persist. Overall, the market is more inclined to buy "FOMO insurance" than to hedge against a correction, but fears of true tail risk remain somewhat contained.