To hedge the 'Godzilla' (Japanese repatriation) tail risk, investors can buy out-of-the-money calls on the yen at attractive prices because FX volatility is extremely low despite significant equity/bond market moves and geopolitical uncertainty. Yen calls are cheap insurance analogous to fire insurance on a house.
normativepending
Speaker
Louis GavkEvidence Quote
“you can buy some out- of- the- money calls on the yen for fairly little money...buying yen calls for me today is essentially buying house insurance”
Source
There's Going To Be One Hell Of A Hangover When The Market Party Ends | Louis Gave— Adam Taggart | Thoughtful Money®Created: 8/12/2026, 6:25:43 PM
My Notes
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