An RBC Capital Markets analyst says that based on recent options trading, the market believes the next US president will be known by November 6th.<br />However, Amy Wu Silverman, RBC's head of derivatives strategy, believes the risk of a contested election is 'severely underpriced' in the stock market.<br />According to Markets Insider, the stock market is eagerly waiting for Congress to pass the next fiscal stimulus package.<br />However, no progress will be made until a clear winner of the election is determined.<br />We in the options market think about tail events, my worry now is that maybe a situation coming up where there is not a clear winner for a while. Amy Wu Silverman, Head of Derivative Strategies RBC Capital Markets<br />A tail event is an unpredictable and rare market outcome that could come as a shock to investors.
