SKEWered

Tyler Durden's picture

While stocks are surging in nominal terms, the options markets are increasingly pricing in greater and greater downside risk concerns. Currently, we are at record levels for this so-called Skew (meaning the price of downside protection outweighs the cost of upside protection by the most ever). Trade accordingly.

 

and if you are looking for 'cheap' hedges, here is Goldman's ranking of global across asset class hedge relative costs:

Chart: Bloomberg