GOLDMAN SACHS SUGGESTS BUYING PUTS ON WEAK-FUNDAMENTALS STOCKS
Goldman Sachs recommends using puts on companies with low or negative free cash flow to hedge against a potential market pullback. With equities near all-time highs, fundamentals gain importance in a sell-off.Targeted stocks, including Southwest Airlines, JetBlue, Avis Budget, and Hertz, show limited downside support and offer a cost-efficient alternative to broad index hedges, especially given relatively low options volatility. Free cash flow remains the key metric for assessing downside risk.The copyright of this article belongs to the original author/organization.
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