Premium"The Asymmetry Has Shifted": Goldman Vol Trader Steps Off The AI Train With Hedge Funds The Most Crowded In Mag 7 On Record
Five weeks ago, the pitch from Goldman's derivatives desk was simple: nobody owns AI, the options are cheap, buy it. It worked. The problem with a trade that works is that eventually everybody owns it.
That, in one line, is the message of the latest note from Goldman vol trader Shawn Tuteja, titled with characteristic sell-side understatement "a bit less clear" (available to pro subs). Readers will recall that at the end of August, when hedge funds were nursing the two worst months on record for Goldman's TMT momentum pair, Tuteja said the "risk-reward to owning upside" was "extremely compelling" (Aug 31) and recommended buying calls on Goldman's AI leaders basket. With the S&P closing Tuesday at a record 7,818.93 and the Nasdaq 100 at a record 31,224, he is now taking the other side of his own call: