How did option markets reflect recent market uncertainty?
Chart • June 29, 2026
*Implied volatility is the average of 30-day at-the-money call and put options.
Source: OptionMetrics data as of Jun 24, 2026; Options linked to MSCI EAFE, MSCI Emerging Markets and S&P 500 Indexes used for EAFE, EM and the U.S., respectively. Past performance is not indicative of future results.
Recent geopolitical tensions and energy-market uncertainty have driven a spike in implied volatility across global equity markets. Emerging markets saw one-month implied volatility climbed to around 40%, compared with 28% for EAFE and 26% for the U.S.
What's interesting is that through April and May, implied volatility for call options linked to the MSCI EM Index was higher than puts, suggesting investors were positioning for upside rather than seeking downside protection.
During the period observed, options pricing suggested relatively greater interest in emerging markets than a broad flight from them.
Keep track of how volatility is evolving with our Daily Volatility Insights report on Markets in Motion.