Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (69154)	10/16/1999 6:44:00 AM
From: AurumRabosa	Read Replies (1) \| Respond to of 132070

MB, Freddie Mac is a stock that seems like a house of cards. Isn't it a carry trade? Lend long, borrow short, go bankrupt when the yield curve inverts? Could you please shed some light on the market factors that would be most bearish for Freddie? I too like putting on my puts when stock is rising and IVs are low. Last week VIX was 20% and now its 31% and next week it could easily top 40%. It's amazing to be 40 points in-the-money and still have a significant time premium. I'm thinking that OEX could hit 600 before we put in a bottom. But then again, when they put helium balloons like QCOM in the S&P index we could be seeing a lot more downside than historical perspective might indicate. I have some QQQ puts but they seem a bit sluggish, nothing like an OEX put to feel the pulse of the bear.