This doesn't really make any sense. Under the volcker rule UBS can't engage in prop trading. So they wouldn't buy puts for the bank. They have thousands of clients, all with different needs and exposures, so doing some kind of bank-wide put buy "to protect its clients" is an idiotic statement to make. Did the reporter mean to say their wealth management group? Or is he just a moron?
A high implied volatility is totally warranted when we have daily +1% moves... Expensive compared to 2 months ago: yes... compared to the actual market situation... no.
The least expensive strategy for them and their clients is to buy mostly good dividend paying stocks with strong potential for capital gains and then make minimal changes in the portfolio over time. When corrections hit, simply do nothing other than to use them as an opportunity to put cash to work. Only make changes if there is a significant change in the long-term outlook for a particular holding. As the customers time horizon decreases move increasing portions of the portfolio to bonds. The portfolio manager has an obligation to their client to study, understand, and stay on top of macroeconomics. Have any of you heard this before? I hope so.
%% Bull; LOL actually he tends to live his nickname =Buy 1 sell2. Some take nicknames real serious LOL