Investors should use options to hedge against the rising prospects of Elizabeth Warren’s bid for the Democratic presidential nomination as that risk seems to be underestimated in the market, according to Goldman Sachs Group Inc. Options on the $17 billion Health Care Select Sector SPDR Fund, known by its ticker XLV, are particularly attractive, analysts led by John Marshall wrote in a research note. The fund’s implied volatility, a gauge of options prices, is around a five-year low compared with the S&P 500, the firm’s data showed. Health-care shares have trailed the market this year amid concern potential regulations on drug pricing will hurt industry profits.
from FA News https://www.fa-mag.com/news/goldman-sachs-says-buy-health-care-options-on-elizabeth-warren-s-surge-51827.html
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