The S&P 500 single-stock put-call skew has plunged 75% since March, hitting a near 20-year low. Investors are ditching hedges and riding the rally unprotected. This demand for protection has reached its lowest level since Trump’s tariff announcements in 2025, when fear dominated the market. The current backdrop makes this situation particularly notable: trade policy remains a live variable and tariff frameworks established during the 2025 turbulence are still in play. The cost of buying downside protection hasn’t been this low in roughly two decades.
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