The Tell

Options traders are bracing for a stock-market crash

Demand for crash protection soared last week, according to Cboe data

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Options traders are hoovering up contracts that would pay off if the S&P 500 were to crash. Photo: Getty Images/iStockphoto

Options traders are bracing for a looming stock-market crash, the latest data from Cboe Global Markets show.

A dispatch from Cboe Global Markets’ Mandy Xu, shared with MarketWatch on Monday, revealed that demand for deep out-of-the-money call options tied to the Cboe Volatility Index VIX — otherwise known as the VIX, or Wall Street’s ”fear gauge” — surged last week.