Equity Derivatives Strategy "Buying the Rally. Pricing the Risk." Fowler

研报英文原文证据摘录

Equity Derivatives Strategy "Buying the Rally. Pricing the Risk." Fowler

Global Research

20 July 2026ab

Equity Derivatives Strategy Global Strategy

GlobalBuying the Rally. Pricing the Risk.

Gerry Fowler

Strategist

A rally with embedded fragility gerry.fowler@ubs.com

+44-20-7567 5490

Equity Strategy have detailed the compelling case for more US equities upside and sector

opportunities as earnings, rather than multiple expansion, increasingly support the rally. Maxwell Grinacoff, CFA

StrategistThe AI investment cycle is early, growth is broadening and valuations do not fully reflect

maxwell.grinacoff@ubs.com

the improvement in fundamentals. Crowded momentum positions, leverage and de- +1-212-713 3892

grossing leave the market vulnerable in the short term, but this is a reason to structure

exposure rather than abandon it. Artour Danilov

artour.danilov@ubs.com

Use expensive volatility to finance exposure +44-20-7567 5203

Single-stock and sector volatility is near record levels relative to index volatility, creating

Keith Parker

great opportunities for directional option selling. We favour selling expensive options Strategist

where the underlying trend is mispriced, then using the premium to fund index keith.parker@ubs.com

exposure. Eg. Selling two SOXX puts to fund seven SPX calls at roughly zero premium +1-212-713 3296

captures this: monetise expensive semiconductor protection to retain 3.5x leverage to

Sean Simonds

market upside. Strategist

sean.simonds@ubs.com

Cyclicals win, but the macro regime determines which ones +1-212-713 2851

A disinflationary boom favours cyclicals, particularly banks and homebuilders, over Bhanu Baweja

Energy as stronger growth combines with lower inflation pressure and nominal yields. Strategist