Hedging against the unknown has always been the main objective in the options market. One risk traders are increasingly aware of is missing out on the potential rally in equities in 2023.
The $Cboe S&P 500 Risk Reversal Index(.RXM.US)$, which tracks a strategy of selling puts to buy a call, was up 1.5% last year, while the $Cboe S&P 500 5% Put Protection Index(.PPUT.US)$, which follows a strategy that holds a long position on the eq...