Options Insight: How to Prepare for a Possible Rate Hike

The video discusses current market conditions, highlighting increased put buying as a hedging strategy amid low volatility and macroeconomic uncertainties. It examines market indicators like VIX and V VIX, noting a bearish sentiment without extreme pessimism. A specific hedging strategy using SPY options is proposed to protect portfolios against potential market downturns due to upcoming macro events, including political conventions and Fed meetings. The discussion also covers the potential impact of Fed decisions on market movements.

What does the increase in put buying indicate about market sentiment?

How does the current macro environment affect portfolio hedging strategies?

What are the implications of the VIX going up in today's market?

Explain the strategy of buying a 205 put on the SPY and selling a 190 against it.

What factors could lead to a relief rally in the market?