Brazil election risk priced: BOVA11 IV 39%, Petrobras 47%, BB 66%

Ahead of Brazil's election, implied volatility on BOVA11, Petrobras, and Banco do Brasil options has surged to 39%, 47%, and 66% respectively, indicating elevated market uncertainty. The elevated IV reflects investor hedging demand and potential for sharp price swings post-election. This signals heightened risk premium in Brazilian equities, particularly in state-linked names.