##{"id":60530,"date":"2012-09-06T10:00:23","date_gmt":"2012-09-06T00:00:23","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/09\/06\/treasure-chest-goldman-recommends-sp-500-put-options\/"},"modified":"2012-09-06T10:00:23","modified_gmt":"2012-09-06T00:00:23","slug":"treasure-chest-goldman-recommends-sp-500-put-options","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/09\/06\/treasure-chest-goldman-recommends-sp-500-put-options\/","title":{"rendered":"Treasure Chest: Goldman Recommends S&amp;P 500 Put Options"},"content":{"rendered":"<p>\n\t<span style=\"font-size: 14px\"><strong>Goldman Recommends S&amp;P 500 Puts &#8211; We like <span class=\"scayt-misspell\">AUDUSD<\/span> Shorts<\/strong><\/span><\/p>\n<p>\n\tBy David Rodriguez, Quantitative Strategist<\/p>\n<p>\n\t<br \/>\n\t<span style=\"font-size: 12px\"><strong>Correlation between Australian Dollar\/US Dollar Exchange Rate and S&amp;P 500 <span class=\"scayt-misspell\">VIX<\/span><\/strong><\/span><\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/FXD-GS SP500-1.jpg\" \/><\/p>\n<p>\n\t<span style=\"color: #ff8c00\">Australian Dollar\/US Dollar Exchange Rate (<span class=\"scayt-misspell\">lhs<\/span>)<\/span><\/p>\n<p>\n\t<span style=\"color: #0066cc\">S&amp;P 500 Volatility Index (<span class=\"scayt-misspell\">VIX<\/span>) (<span class=\"scayt-misspell\">rhs<\/span>)<\/span><\/p>\n<p>\n\t<strong>Correlation between AUD\/USD and S&amp;P 500 Volatility Index<\/strong><\/p>\n<p>\n\tA group of equity market strategists at Goldman Sachs recently issued a report recommending that readers go long Puts on the S&amp;P 500 that expire on September 14&mdash;options that give the buyer the option to sell the S&amp;P at a predetermined price. Why? The S&amp;P 500 Volatility Index looks especially low given critical European and US economic event risk through the end of this week warns and a pivotal German vote on September 12.<\/p>\n<p>\n\tThe recommended trade would do well if the S&amp;P <span class=\"scayt-misspell\">VIX<\/span> surges and\/or the S&amp;P 500 falls before September 14.<\/p>\n<p>\n\tHow do we trade such big event risk?<\/p>\n<p>\n\tGiven the strong correlation between stocks, the <span class=\"scayt-misspell\">VIX<\/span>, and the <span class=\"scayt-misspell\">AUDUSD<\/span>, we believe that an Australian Dollar-short position would likewise do well in such conditions.<\/p>\n<p>\n\tIs now the time to buy Australian Dollar weakness? We see arguments for and against such a trade, but ultimately the results of critical event risk will likely decide the fate of the risk-sensitive AUDUSD.<\/p>\n<p>\n\t<strong>Forex Correlations Summary<\/strong><\/p>\n<p>\n\tView forex correlations to the S&amp;P 500, S&amp;P Volatility Index (VIX), Crude Oil Futures prices, US 2-Year Treasury Yields, and Spot Gold prices.<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/FXD-GS SP500-2.jpg\" \/><\/p>\n<p>\n\t&nbsp;<\/p>\n<p>\n\tThe views expressed are not FNArena&#039;s (see our disclaimer).<\/p>\n<p>\n\tFor real time news and analysis, please visit http:\/\/www.dailyfx.com\/real_time_news<\/p>\n<p>\n\tDailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM.<\/p>\n<p>\n\tRepublished with permission of the publisher. To view the original publication: http:\/\/www.dailyfx.com\/forex\/technical\/article\/forex_correlations\/2012\/09\/05\/goldman_recommends_buying_s_and_p_puts_we_like_audusd.html<\/p>\n<p>\n\twww.dailyfx.com<\/p>\n<p>\n\t<em><strong>Disclaimer<\/strong><\/em><\/p>\n<p>\n\t<em><u>Forex Capital Markets is headquartered at Financial Square 32 Old Slip, 10th Floor, New York, NY 10005 USA.<\/u><\/em><\/p>\n<p>\n\t<em>Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before you decide to trade the foreign exchange products offered by Forex Capital Markets, LLC, Forex Capital Markets Limited, inclusive of all EU branches, FXCM Asia Limited, or FXCM Australia Limited, any affiliates of aforementioned firms, or other firms under the FXCM group of companies [collectively <span><span class=\"scayt-misspell\">&ldquo;FXCM<\/span><\/span> Group&rdquo;] you should carefully consider your objectives, financial situation, needs and level of experience. If you decide to trade foreign exchange products offered by FXCM Australia Limited you must read and understand the Financial Services Guide and the Product Disclosure Statement. FXCM Group may provide general market information and commentary which is not intended to be investment advice and the content of this email must not be construed as personal advice. By trading, you could sustain a total loss of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading in foreign exchange products. Foreign exchange products are only suitable for those customers who fully understand the market risk. FXCM recommends you seek advice from a separate financial advisor.<\/em><\/p>\n<p>\n\t<em>FXCM Group assumes no liability for errors, inaccuracies or omissions in these materials and does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM Group shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this e-mail is strictly confidential and is only intended for use by the recipient. All e-mail sent to or from this address will be received by the FXCM corporate e-mail system and is subject to archival and review by someone other than the recipient.&rdquo;<\/em><\/p>\n<p>\n\t<strong>Technical limitations<\/strong><\/p>\n<p>\n\t<strong><span style=\"font-style: italic\">If you are reading this story through a third party distribution channel and you cannot see charts included<\/span><em>, we apologise, but technical limitations are to blame.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FNArena&#8217;s Treasure Chest reports on money making ideas from stockbrokers and other experts. Market analysts at FXCM are seeing a correlation between the AUD\/USD exchange rate and the S&amp;P 500 VIX.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17],"tags":[29],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/60530"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=60530"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/60530\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=60530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=60530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=60530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}