Stocks Near Highs, Valuations Stretched, and Puts Are Cheap — Act on It
Keep the Protection On. Stocks sit near record highs while valuations are richer than in roughly three-quarters of all months since 2006.
October 21, 2026 at 12:00 PM EDT
Justification
Stocks sit near record highs while valuations are richer than in roughly three-quarters of all months since 2006. The VIX, Wall Street's fear gauge, is 16.7 — below its one-year average of 18.0 — which makes protective put options unusually cheap right now. The Fear and Greed Index reads 31, firmly in fear territory, even as the S&P 500 is only 0.8% off its peak. Buy protective puts on broad market exposure; Technology led today but carries the most valuation risk if sentiment shifts.
Since the Last Issue
- Fear and Greed Index moved from 29 to 31 since the prior issue — still in fear territory but improving.
- VIX fell from 17.2 to 16.7 since the prior issue, making options cheaper than they were yesterday.
📡 Today's Opportunity Radar: SMH · JETS · URA. Full ideas in the Opportunity Radar section below.
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