Calm Markets, Stretched Valuations: Cheap Puts Won't Stay Cheap Long
Stay Trimmed. Markets look calm on the surface, but the calm is the warning.
October 13, 2026 at 12:00 PM EDT
Justification
Markets look calm on the surface, but the calm is the warning. Stock valuations are higher than roughly 79 out of every 100 months since 2006. The VIX, Wall Street's fear gauge, sits at 15.5 — well below its one-year average of 18.1 — making protective put options cheap right now. The Fear and Greed Index dropped to 43, sliding toward fear even as prices stay near all-time highs. Buy protective puts on your largest equity positions before earnings season forces a repricing.
Since the Last Issue
- Fear and Greed Index fell from 46 to 43 since the prior issue, the lowest reading in several weeks
- S&P 500 slipped from 7807.2 to 7793.3, a move of -13.9 points
📡 Today's Opportunity Radar: XOP · FCG · PEJ. Full ideas in the Opportunity Radar section below.
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