Why Not Take A Minute Away From Buying XIV On Your Credit Card To Put On These Goldman-Approved Hedges?

Are you looking to hedge all of the risk exposure you put on today when you bought the fuck out of the nuclear war dip?

Probably not.

In all likelihood, you’re writing a bunch of naked puts and loading up on XIV with a home equity loan and whatever you could get as far as a cash advance on your credit card.

But, on the off chance you’re a little concerned that things could get dicey next month amid the debt ceiling debate, two potentially critical central bank meetings, and some kind of unilateral military strike on the regime in Pyongyang, Goldman has got your back.

Here’s a quick excerpt from a note out this afternoon:

In July we recommended gold straddles and out of the money put spreads on S&P 500 as attractive tail risks hedges in the current environment. Since that time gold has rallied more than 6%, but gold vol remains relatively anchored compared with its history, as does broader cross-asset volatility.

We continue to like these implementations as hedges and think they make sense given many investors we speak to remain “reluctantly long” risk in this late cycle environment. The gold straddle also has the advantage of likely doing well should risk moderate materially in the near-term, as it has around other recent vol spikes.