Markets were once dominated by bulls who thought stocks would go up and bears who thought they would go down. These days, another animal is on the rise. It doesn’t much care what stocks do, as long as they do something.

These investors are focused on volatility, the amount of movement in prices over time. In recent years, volatility has gone from a specialty of derivatives traders to a vehicle for trading in its own right. Investors big and small are wagering hundreds of billions of dollars on volatility, including by betting…

Read More