(Bloomberg) -- Trading desks at firms including Goldman Sachs Group Inc. and Citadel Securities are telling clients to buy cheap hedges against potential losses in US stocks as a slew of risks loom over the market’s record advance.

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Right now, major indexes are soaring as the US inks trade deals amid a solid earnings season. Wall Street’s so-called fear gauge hasn’t been this low since February, and the S&P 500 Index has rallied 28% since April 8.

That backdrop is making it cheap to hedge against a market slump. The cost of protection against a 10% decline over the next month in an exchange-traded fund that tracks the S&P 500 versus a 10% gain is at the lowest level since January.

“If you are nervous, the market is making it very easy to rent hedges,” Goldman’s trading desk wrote in a note to clients on Monday.

The advice comes before a number of events that risk raining on the market’s parade. The Federal Reserve releases its next interest-rate decision on July 30, two days before President Donald Trump’s tariff deadline. The US has yet to reach trade deals with key partners like Mexico and Canada. An impasse in talks that reignites trade tensions could dent investor sentiment and spoil the risk-on mood.

The July jobs report is also due at the end of the week, with huge implications for Fed policy in the coming months. Plus, consequential earnings results from Big Tech companies including Nvidia Corp. still lie ahead.

“It’s time to buy volatility,” BofA Securities Inc.’s John Tully wrote to clients on Monday, noting that the VIX Index historically tends to hit the lowest level of the year in July. He recommends clients buy S&P 500 put options expiring on Aug. 22, which would capture much of the reaction to the Fed’s annual economic symposium in Jackson Hole.

To be sure, there are reasons to believe the current rally will continue. Scott Rubner, head of equity and equity derivatives strategy at Citadel Securities, told clients that retail traders are one group that could offer support. Also, if the Fed finds that tariffs aren’t driving inflation or impeding economic growth, a rate cut in September could drive further gains, according to Tully.

Ilan Benhamou, a member of JPMorgan Chase & Co.’s equity derivatives sales team, suggested that clients buy put options that expire Aug. 1 to protect against a slump in stocks in response to the tariff deadline and the July non-farm payrolls report the same day.

As stocks extend their advance, long exposure is approaching elevated levels across institutional investors such as systematic funds, according to Rubner. Soon, he said, they will “take their foot off the pedal.”

Rubner urged investors to move into hedges expiring in September to protect against macro events. There’s also historical precedent: data going back to 1928 shows that September is the worst-performing month of the year for US equities, he said.

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