Posted 3/15/2024, 1:49:00 PM
Goldman Sachs Recommends VIX Calls as Cheap Insurance Against Potential Stock Selloff
- Goldman Sachs strategists recommend buying VIX calls as cheap portfolio insurance against a potential stock market selloff
- VIX calls can pay off if volatility suddenly rises, as often happens when markets fall
- Goldman model shows high chance of sudden selloff in next month due to complacent traders and extended rally
- Upcoming events like Nvidia investor day, Fed meeting, earnings reports could rattle markets
- VIX tends to rise seasonally in Spring; average 19 in April over past 30 years, currently only 14