Also to the thread.
Are their any form of put options for the Nasdaq. Unlike some on this thread I think the next few months could see a big drop in the markets. I considered using Put options on a few high flyers, but most of the biggest high flyers have either corrected, lack suitable options, or the options are to overpriced and the spread to great for my liking. Hence it seems to me the a put on the Nasdaq would make more sense.
Also, be careful of the buy on the dips mentallity. One day it will backfire badly. If you bought after the first 30% drop in 1929, you saw it drop another 30% (in a couple of days). Then after a period of consolidation it dropped another 30%, drifted down a further 30%, dived 30% and then...
Dropped another 30%...
Dropped another 30%...
Dropped another 30%...
And finally hit the bottom, 30% lower. Buying on the dips is a little bit like going to the casino, making a small bet and doubling each time you lose. For the first hundred times you try this you will probably come out ahead, and then the final time you will lose everything.
And if you don't believe 1929 could re-occur, check out Japan exactly 10 years ago. And whatever anyone tells you, NO, this time it's NOT different. (Except that the market is vastly more overvalued than during 1929 or Japan was). It might not happen today, or this year, or even in the next year, but at some point the Nasdaqs average PE of 200 has to drop back to the historic norm of 20.
Graeme
PS. Original question is are there Puts on the Nasdaq? |
