As bullish bets surge, here’s the Goldman Sachs options play to protect portfolios from the likely pullback - MarketWatch

With bullish bets piling up and the S&P 500 trading near record highs, Goldman Sachs is recommending an options-based hedge focused on materials, technology and energy to protect portfolios from an expected pullback. The approach favors sector-specific downside protection rather than a broad-market hedge, reflecting crowded positioning and the risk that rising bond yields could trigger a correction, even as heavy Memorial Day retail promotions and consumer discounts may influence sector demand and short-term volatility.