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


To: ild who wrote (69154)9/3/2006 6:36:12 PM
From: YanivBA  Respond to of 110194
 
Option sellers have set themselves arbitrary targets of 10% to 12% returns a year. With the low VIX, they are forced to take two to three times as much of the same position to target these returns. Conversely, funds are overleveraged and underhedged at a time when liquidity is drying up.

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