Clients May Want to Change Their Hedging Habits, RBC Says
- Wu Silverman says bounce-back days might be best point to act
- Strategist sees EFA ETF as a top vehicle for protection
The DAX Index curve sits on display inside the Frankfurt Stock Exchange, on Monday, March 2.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Some investors might benefit from changing when they think about buying protection, RBC Capital Markets suggests.
Skew, a measure of how expensive bearish options are compared with bullish ones, rose for many stock-market measures over the past week. That’s no surprise given that the S&P 500 Index fell 13% in the seven sessions after it hit a record high last month. After a big gain Monday, the gauge dropped again Tuesday morning, falling 0.7% as of 9:50 a.m. in New York.