Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bill meehan who wrote (75146)	2/3/2000 10:16:00 PM
From: yard_man	Read Replies (1) of 132070

Do you think that option markets are efficient? I'm asking because I have an opinion, of course. I think that (option) volatility premium has been uncharacteristically low -- given the real volatility that we've seen in the market starting from December. Look at the percentage swings we've seen since then. This was the reason I bought puts toward the end of December. I guess it was dumb luck that I had a couple of good winners -- but they appeared dirt cheap to me given the huge swing we'd had. Some options still appear that way to me -- even if a guy didn't know the direction over the next 4 - 8 weeks (I'm foolish enough to think I do -- but that's another story) the price you pay to play appears to be low. Seems to me the VIX ought to be in the low 30's at a minimum given the swings we've had. Think I'm deluded? Don't answer that. :-)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next