Leslie, well, for one thing, there will be a shortage of Diet Coke...that should tip you off.
I don't have a time frame on this cyber nightmare.
But seriously, you'll see it in the options put volatility first. CMGI puts were trading at about 123 implied volatility on Friday. The calls were slightly lower. When you see put volatility ratchet up 20 - 30% on a host of first tier inets, it's time to convert to cash, pay up for the puts in a one-to-one ratio to cover your stock, set positions using put spreads, or sell at the money or in the money calls, depending on the cost you're willing to pay for downside protection, how much "insurance" you require.
Personally, I'd be less inclined to pay up for the puts unless I bought the spread - on CMGI for example - say buy the 220's and sell the 180's. The theory is fine, but in fast market conditions, all sense of normal and customary trading paradigms will probably evaporate as will our ability to hedge at fair market value prices.
Best regards and here's hoping it doesn't occur,
Mark A. Peterson |
