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 Gavk

Evidence 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 GaveAdam Taggart | Thoughtful Money®
Created: 8/12/2026, 6:25:43 PM

My Notes

Loading notes...