RBC's Silverman on Positioning to the Downside

The video discusses the current state of the options market, highlighting the demand for downside protection as markets hit highs. It explores hedging activities, skew index metrics, and the impact of the treasury market on options. The discussion includes market setup ahead of key events like the Fed meeting and earnings season, with a focus on sector analysis. Challenges in hedging and strategies for cost-effective protection are examined, along with market sentiment and the concept of an unloved rally driven by TINA and FOMO.

What does the options market indicate about the demand for downside protection?

How does the skew buying power in the options market reflect investor sentiment?

What are the implications of the current hedging strategies in the options market?

In what ways are labor and material shortages affecting corporate earnings expectations?

What does the current market setup suggest about potential future corrections?

How can investors structure trades to manage downside risk effectively?

What sentiment is reflected in the market despite its upward trend?