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JPMorgan to SocGen Tout Hedges as U.S. Stocks Mask Big Risks

  • BofAML suggests protection amid signals of market stress
  • SocGen, Credit Suisse say far-out tail risk is priced cheaply
Updated on

An awful lot of strategists are recommending hedges on U.S. equities right now.

JPMorgan Chase & Co. suggests bearish options on the SPDR S&P 500 ETF Trust, citing concern the market may be underpricing risks that a deterioration in corporate America’s health could hurt jobs. Bank of America Merrill Lynch is touting puts because its model suggests increasing risk for the S&P 500. And Societe Generale SA and Credit Suisse Group AG see some options tied to the index that are too cheap to pass up.