Options Insight: Making Money in Mid- & Small-Cap Stocks

The video discusses the current state of market volatility, noting subdued levels and the lack of significant moves. It explores the potential for an August surprise similar to last year, despite the absence of major news from China. The discussion shifts to small caps, highlighting their lag behind other indices and the potential for a sentiment shift. A put spread strategy on the IWM is suggested for downside protection. Finally, the correlation between oil prices and market trends is examined, with a focus on the psychological impact of oil prices breaking below $40 a barrel.

In what ways might a sentiment shift affect the Russell market compared to other indices?

What is the significance of the $40 per barrel mark for oil in relation to market risks?