As the 2024 U.S. presidential election approaches, investors are increasingly focused on the associated risks impacting the stock market. UBS has highlighted a rise in election risk premia, indicating heightened uncertainty among market participants. Analysts suggest that geopolitical factors pose a greater risk to U.S. equities than a domestic recession. In response to these concerns, U.S. corporations are returning to foreign exchange options as a strategy to hedge against potential volatility related to the election and broader macroeconomic risks. This trend is reflected in the trading of S&P 500 Index options and Cboe Volatility Index futures, which serve as indicators of market sentiment regarding equities as the election nears.