Market Correction or a downward spiral -- it is decision time --bail the longs? --hedge with ITM puts Checking option volumes SPX smashes EM then comes right back home Vol futures making me nervous When bifurcation collapses into correlation; the risk is magnificently large A/D lines displaying lack of diversification VVIX saw this move coming SPX Expected Move --last week- 62.16 (expected move) --next week--107.71
Is the Worst of the Market Yet to Come?
2 Comments
Peter
September 4, 2020Excellent presentation as usual... I look forward to these more so than any other commentaries. Don impresses me abundantly. Makes me want to join.
RON
September 5, 2020As I understand it, one does not know whether buying or selling puts or calls is a hedge or an actual long or short play. One would need to dissect the bid and ask for each trade. So, a large put purchase could be a hedge against the trader's long bias. Also, with the election, just a couple of months out will the Fed or Trump attempt to support the market. If you look at the dividend return, the stock market yields a higher return than bonds. Money always needs to find a place to go.