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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (21995)	11/19/2004 8:53:11 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

<short any particular asset class in favor of some other variety of assets.> I think about everybody in the world has picked some bubble or another to play on this. This situation could end suddenly and dramatically though, so an allocation to puts makes complete sense to me. With a 12 VIX, they are priced cheaply in indexes like MDY, IWM, RTH, XLY, XLF, QQQ. If they don't work in any particular month (obviously Nov.) I'm trying to pay for them by writing naked calls on very expensive silly season stocks like GOOG, RIMM, TASR (worked in Nov). The homebuilders like MDC, KBH, and TOL also have expensive calls that can be sold. SMH is pretty expensive too. Think you want at least 40% IVs on those, and over 60% on silly seasons.