Market Collapse? Never Been This Cheap To Protect Your Portfolio Using This Strategy, Experts Say
Portfolio Pulse from Piero Cingari
Bank of America's Global Equity Derivatives Research team has noted that market hedging costs are at a historic low, making it a sensible time to buy long-dated S&P 500 put options. The team highlighted that the current low cost of protection is particularly notable given the current climate of 3-4% inflation, a potential recession, and high stock-market valuations despite elevated interest rates. The iShares 1-3 Year Treasury Bond ETF (NYSE:SHY) and the Proshares Trust VIX Short-Term Futures ETF (NYSE:VIXY) were mentioned as other ways to hedge against market downturns.
July 28, 2023 | 4:23 pm
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NEUTRAL IMPACT
Bank of America's research suggests it's a good time to buy long-dated S&P 500 put options due to low market hedging costs. This could potentially impact the bank's derivatives trading volume.
The news is directly related to Bank of America's research and could potentially impact the bank's derivatives trading volume. However, it's uncertain how this will affect the bank's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
The iShares 1-3 Year Treasury Bond ETF (NYSE:SHY) was mentioned as a way to hedge against market downturns. The current low cost of market hedging could potentially impact the ETF's trading volume.
The news mentions the iShares 1-3 Year Treasury Bond ETF as a way to hedge against market downturns. However, it's uncertain how this will affect the ETF's trading volume or price in the short term.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
The Proshares Trust VIX Short-Term Futures ETF (NYSE:VIXY) was mentioned as a way to hedge against market downturns. The current low cost of market hedging could potentially impact the ETF's trading volume.
The news mentions the Proshares Trust VIX Short-Term Futures ETF as a way to hedge against market downturns. However, it's uncertain how this will affect the ETF's trading volume or price in the short term.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50