As these market drivers start to weaken, it’s time for investors to buy protection, says Deutsche Bank

Deutsche Bank strategists warn that key market tailwinds—strong earnings momentum and hopes for de‑escalation in the Persian Gulf—are fading, leaving equities vulnerable to a sharp correction. They advise investors to buy out‑of‑the‑money put options as affordable insurance because option volatility remains relatively low now. The bank’s proprietary Pressure Index is edging higher, and ongoing disruptions (an effectively closed Strait of Hormuz) plus geopolitical risks around Taiwan increase the probability of an extreme market event. Nvidia, the last major earner to report, is highlighted as a near‑term catalyst. Overall, the note signals increased downside risk for stocks and recommends protective positioning rather than adding risk exposure.