The cost to hedge against a stock market drop has fallen to its cheapest level since April 2025 🚨 x.com/Barchart/status/20870316…
· 62K Views
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The cost to hedge against a stock market drop has fallen to its cheapest level since April 2025 🚨 x.com/Barchart/status/20870316…
· 62K Views
@Barchart April 2025 was the last time hedges were this cheap, and April 2025 is precisely when the tariff selloff hit. Cheap insurance has a way of marking the moment right before people wish they’d bought it
@Barchart When downside insurance gets this cheap, the risk/reward of hedging improves even if you’re bullish. Cheap protection usually looks unnecessary right before it matters.
@Barchart When everyone stops paying for insurance, that’s when the market gets interesting.
@Barchart Cheapest since April 2025 gets read as calm. Pulled every session since 1990 where tail protection got this cheap into a record high, the read flips. x.com/PurdyCapital/status/2086…
@Barchart Cheap protection usually means confidence has become comfortable. I do not pretend to trade macro perfectly, but I know the business version: the moment every forecast looks safe is when I check cash, fixed costs and downside assumptions twice.
@Barchart The cost to hedge against a stock market drop has fallen to its cheapest level since April 2025 🚨
@Barchart cheap hedges usually just mean nobody has needed them in a while. spx has ground higher without a real drawdown since spring so put demand dried up. doesnt time anything on its own but its a decent read on how positioned people are
@Barchart Historically, periods when no one buys protection are often the precursor to an unexpected market correction! 😏
@Barchart Cheap protection while risk appetite is elevated is an interesting combination. Markets rarely get dangerous just because one indicator says so. It’s when volatility, breadth, positioning and price structure begin confirming each other that things get interesting.
@Barchart that's what happens when margin compression meets increased leverage on the long side
@Barchart Hedge fund of Trump & Bessent have smashed safe havens like VIX, oil, gold, and silver to try and keep lid on bonds and push stocks higher!!! Why are investors not loading up on IMHO the greatest asymmetric trade possibly in history when all these risks explode simultaneously!!!