By Jan-Patrick Barnert, Bloomberg Markets Live reporter and strategist

Investors laser-focused on the risks looming in the next few weeks may be left unprepared if their worst fears don’t come to pass.

Volatility is elevated for options on stocks, bonds and currencies alike as investors pay up for protection. The risks are clear: a hotly contested US election, interest-rate decisions in the US and Europe, the threat of a wider Middle East conflict and quarterly earnings. In the stock market, implied volatility is outpacing actual swings, and puts protecting against a selloff are favored over bullish calls.