Options traders shift from defensive to bullish postelection
SP 500 gains 3 since Nov. 5 vote
Volatility index drops as market fears subside

NEW YORK, Nov 15 Reuters Options players are piling in to riskier bets across the U.S. stock market, supporting a rally that has come on the back of fading election worries and expectations of a Republican lock on power in Washington next year.

The bullish plays span a wide array of assets, from electric car maker Tesla to smallcap stocks and regional banks. Together, they have helped drive the SP 50039;s gain of 3 since the Nov. 5 vote.

We39;ve got this relief from this big risk, said Garrett DeSimone, head of quantitative research at OptionMetrics. It39;s just across the board … you39;ve got everything, with the exception of bonds, going up.

Options traders adopted a defensive posture ahead of the election to hedge their portfolios from possible electionrelated volatility, including worries over a result that might be too close to call immediately or contested.

Many are now shifting to a bullish stance, wary of underperforming a market that has rallied following a victory by Donald Trump and Republican control of both houses of Congress, which had been anticipated following the election and was projected by Edison Research on Wednesday. The result is expected to give Republicans a freer hand in pursuing their economic agenda, which includes tax cuts and looser regulations.

Investors are panicking to chase stocks at all…