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

To: Box-By-The-Riviera™ who wrote (69474)	9/7/2006 7:55:20 PM
From: YanivBA	Read Replies (1) \| Respond to of 110194

I think the option seller side is over crowded. Make a newbie poll. Ask what is better, to buy options or to sell options. You will get the same answer everywhere: the house always wins. But markets are not like that. Any trade can get over crowded. I think implied volatility has a lot to do with hedge fund net inflows. The pay structure of the typical hedge fund manager makes him heavily tilted to take the steady income an insurer makes. He knows that if he is ever really called on his contracts he can always default. So what I deduct is that as long as money is flowing into hedge funds the Vix is going to remain subdued but if the wheel changes direction ... People call the Vix the Fear meter. I call it my hedge fund meter. Which is really the same because it takes a leap of faith to hold your money in a hedge fund. YanivBA