BlockBeats news, on March 30, according to MarketWatch, the JPMorgan Hedged Equity Fund will reset its positions on March 31, amid market concerns that the S&P 500 will experience significant volatility this week.
The fund protects against downside risk through a put-spread collar options strategy while also capping upside potential. The current key strike price is 6475 points, which creates a “Kryptonite effect” on the market—repelling prices whether approached from above or below.
As of last Thursday, the S&P 500 had fallen below 6475 points and accelerated its sell-off. With the quarterly reset approaching, analysts believe this could trigger passive selling in the short term, leading to a “disconcerting” slow decline. After the new positions are established, volatility is expected to gradually ease.