Goldman Sachs: Time To Hedge? Goldman's Flow-Of-Funds Guru Scott Rubner Suggests Hedging. Here Are Inexpensive Ways To Do So Ahead Of Mag 7 Earnings Next Week

"Hedging Is Gaining Traction"

That's what Goldman Sachs's flow of funds guru Scott Rubner said in his note earlier today ("I Am Not Buying This Dip").

He also pointed out that four of the Magnificent Seven mega caps are reporting earnings next week: Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), Apple, Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN), and that if their results and guidance are not "great", those stocks will likely get punished in this market environment. 

In the video below, I show inexpensive ways of hedging Microsoft and Meta ahead of their earnings next week. 

I mention a couple of times there that there's a link to download the newly updated Portfolio Armor iPhone app in the description of the video. Unfortunately, I found out after recording that that YouTube is not allowing me to post clickable links in the description, apparently because I uploaded a newsworthy clip of the late head of Wagner PMC recruiting prisoners for the Ukraine War last year (they have Wagner listed as a criminal organization, even though it's basically the Russian version of America's Blackwater). 

But you can download the app here.

Hedging META Ahead Of Earnings

This is one of the hedges I present in the video, an optimal collar, as of Wednesday's close, to hedge 500 shares of META against a >5% decline by next Friday, without capping your possible upside at less than 8% on the week. 

As you can see, the net cost there was negative, meaning you'd collect a net credit of $1,725 when hedging META this way. 

Something to consider if you're long Mag 7 stocks heading into earnings next week. 

Using The Correction To Look For Buying Opportunities

In the Portfolio Armor trading Substack, we'll be using any further correction to look for buying opportunities. If you'd like a heads up when we place our next trade their, feel free to subscribe below. 

If you'd like to stay in touch

You can scan for optimal hedges for individual securities, find our current top ten names, and create hedged portfolios on our website. You can also follow Portfolio Armor on X here, or become a free subscriber to our trading Substack using the link below (we're using that for our occasional emails now).

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.