BlockBeats News, March 30th, according to MarketWatch, JPMorgan’s Hedged Equity Fund will reset its position on March 31st, sparking concerns in the market that the S&P 500 will experience severe volatility this week.
The fund uses a put-spread collar option strategy to protect against downside risk while capping upside potential. The current key strike price is 6475 points, a level that creates a “Kryptonite effect” on the market — price is repelled from above or below this level.
As of last Thursday, the S&P 500 had dropped below 6475 points and experienced accelerated selling pressure. With the quarterly reset approaching, analysts believe that a short-term passive sell-off may be triggered, leading to a “nervous” slow decline. Once new positions are established, volatility is expected to gradually ease.
