Traders are bracing for extra volatility on Friday following the US payrolls report that will be scoured for signals as to how much the Federal Reserve will cut interest rates in November.

The options market is betting the S&P 500 Index will move roughly 1% in either direction after Friday’s US employment data, based on the price of that day’s at-the-money straddles, according to Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy. If it happens, that would be roughly in line with the past two jobs prints, and the biggest move in two weeks.

Traders are …