Volumes are abysmal - even the number of names being traded is low these days. Apparently companies are buying back their shares at phenomenal rates.
May be the dentist in Peoria is content with indexing - and the big boys see no percentage in trying to making money from each other.
If this is true - the worst thing he can do is to use options - if there is no volatility they serve no hedging function. Although premiums would be low - he is still #$%$ money away buying protection that is not needed.
There just doesn't seem to be a case for a market correction as long as rates stay this low. Companies can continue to borrow for nothing and buy back shares for free. It all seems too easy, and it is.
However a rise in interest rates could lop 5000 points off the Dow in a hurry. Maybe it hits 25,000 then drops to 20,000.
It is interesting, especially as trading has gotten to be so inexpensive for individual investors. My guess is that theres just a great deal of investor confidence, fear tends to be a better trading motivator