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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Perspective who wrote (73951)11/9/2006 5:54:34 PM
From: ild   of 110194
 
Renting is Fleck's term. When someone buys a stock not on a long term fundamental merits, but because of short term mostly technical considerations. Buy-Write Funds just buy blue chips on which they sell calls. So they are "renting" stocks for the call durations. This is considered low risk strategy.

The result of massive call selling is that it lowers volatility. That is why VIX is about to plunge into single digits. Also Max Pain is no longer working as most calls sold are covered.
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