|
PureBytes Links
Trading Reference Links
|
No one seems to understand what you just said Dr.. All you read about here is selling
premium. Ira
THE DOCTOR wrote:
> The selloffs, lately, in both bonds and equities have occurred NOT when a wave of
> broad selling it, but rather when the buyers failed to materialize. To get a lot
> of moves like what you describe you would to see:
>
> 1. Selling waves on the decline
>
> 2. Higher sustained implied volatility.
>
> We continue to be in an environment where actual volatility still exceeds implied
> volatility ... this is clearly a fat tails condition which could very easily
> result in what you describe. In fact a fat tails distribution describes a market
> poised for big moves either way. The only experience we have with fat tails
> markets is the current environment and this continues to be driven by the economic
> growth and overall demographics.
>
> By the way it also describes a marketplace where options overall are cheap and the
> bias should be toward buying premium.
>
> Proffittak@xxxxxxx wrote:
>
> > In a message dated 1/11/00 9:31:05 PM Eastern Standard Time,
> > OnWingsOfEagles@xxxxxxxxxxxxx writes:
> >
> > << Seems to me these sharp narrow "small time" 10%-20% "corrections" would get
> > more prevalent, as opposed to any sustained bear market - since the system
> > gets too expensive for anything more to happen, and the world leans on the
> > wrong side too much, and we over-correct in the opposite direction, swiftly.
> >
> > Opinions, Doctor?
> >
> > Gitanshu
> > >>
> > Good Morning
> > when i was managing billions for a major insurance CO in 1987 i was
> > Very tense and worried about redemption of thousands of clients the day
> > after the crash
> > However to my surprise most people are too busy with their life and only
> > got hi volume of calls when the got their 10/31/87 statements
> > the redemption was VERY small. as the customer service people were
> > telling
> > customers that they have to stay the course for the LONG hole
> > happy trading
> > Ben
|