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Middle East crisis revives demand for VKOs – with a twist

Equity investors balance fear and optimism by pairing 2022’s best hedge with lookback options

Crystal-ball-volatility-GettyImages-2166850520

Equity investors are combining the playbooks they used in 2022 and 2025 to navigate a market gripped by geopolitical uncertainty. 

Positions that benefit from a grind lower in equities – such as volatility knockout options (VKOs), which delivered bumper returns four years ago, and short skew strategies – staged a return in recent weeks. In a sign of the delicate balancing act facing invstors, many

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