In the options market, there is a growing demand for upside potential, particularly in gold and silver. According to a recent report from UBS Securities and Treasury (UBS S&T), the GCK6 5500/6000/6500 call fly has been trading, with several call spreads also seeing activity for both gold and silver. Despite a recent price reversal, investors are still optimistic about the potential for upside in these precious metals.

In addition to gold and silver, there is also decent buying activity in equities, particularly in the e-mini S&P futures (ES) and Nasdaq (NQ). The desk at UBS S&T is skewed towards selling in gold, but there has been more buying into the recent weakness on Monday. Meanwhile, options flows have been supportive, with around $2.8 million in premium traded for the ES Friday Feb26 Wk3 7025/7125 call spread.

In fixed income, flows have been mixed, with front-end buying, selling in the belly, and some mixed flows in the long end. Limited larger flows have been seen in the market on Monday, but around 12k of the TYH6 111.5 put traded against various ties.

Overall, the demand for upside potential in the options market is a positive sign for investors looking to capitalize on potential gains in gold and silver. With continued buying activity in these precious metals and other assets, it may be a good time to consider adding positions to your portfolio.