Friday, April 10, 2009

Black swan

http://zerohedge.blogspot.com/2009/04/incredibly-shrinking-market-liquidity.html

The swan is now ready for flight. I point to the call for Deep puts on the S&P. I not the only one to see something bad is in play. We are now looking at another crash. This one will be bloody and will destory all the Players who listen to CNBC and its cheerleaders.

2 comments:

Anonymous said...

Robert -- Could you elaborate on the deep S&P puts? I am learning more about options, but don't feel comfortable enough to trade them.

Robertm73 said...

If you look at SP index (on ameritrade) you can buy options (a bet on the price of stock or index in this case) That it will hit a certain price. I bought very deep (SP would go down a lot) for Jan 2010 (so I have a nine month time period). Option are not for the faint of heart and most likey will cause you lose all your money!
However in some case you can hit a money maker and are especial profitiable during periods of swift and violent movement assuming you are on the right side.