Goldman: It’s Time To Replace Your Stocks

Here's the thing: it's time to replace your stocks with calls. Why? Simple. "THE STOCKS ARE TOO DAMN HIGH AND THE VIX IS TOO DAMN LOW!" We mentioned this earlier this week in "Mark It Zero!' Goldman’s Top 10 Options Trades To Capitalize On Low Vol." Here's how we put it in introducing a few excerpts from a Goldman note: So given that SPX 1m implied volatility (8%) is now at the lowest level on record (since 1988) and plunging stock correlations are helping to keep vol suppressed, Goldman

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3 thoughts on “Goldman: It’s Time To Replace Your Stocks”

Wasn’t there and old song that went something like, “For every season, there’s a reason; churn, churn, churn…or something like that?

Soooooo, Goldman recommends selling the stock and replacing it with a long call, but they don’t recommend keeping the stock and hedging with a put because….they simply don’t like synthetic calls? They’d prefer people be taxed at short-term rates rather than long-term?
What don’t I understand, other than everything?

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