Option hedges for China volatility risk GS

News Snapshot:

Goldman Sachs’ analysts highlighted three-month puts on stocks and ETFs that they view as attractive options to hedge against China (NYSEARCA:FXI) volatility risk. A thematic risk that analysts are focusing on is China trade risk. “We expect China trade to be one of the key focus items of the political discourse as we navigate the presidential election year, and we see owning volatility on stocks with high China exposure as an attractive hedge for investors focused on the impact of the election on US-China trade,” GS analysts wrote in their Portfolio Hedging Toolkit report for February. The report compiles stocks...