By Jan-Patrick Bartner, Bloomberg markets live reporter and strategist
The forecasts for a drop in stock-market volatility after the US presidential vote have come about even faster than expected, with options traders now positioning for an extended rally.
The post-election outcome is crystal clear and in strong favor of risk taking, with the only real surprise being the speed of the resolution, which spared days and possibly weeks of uncertainty. With hedging demand shrinking at nearly the fastest pace since the financial crisis and rally-chasing in full swing, volatility has nowhere to go but down.
