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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Grandk who wrote (909)9/10/2007 9:32:04 PM
From: Real Man  Read Replies (1) | Respond to of 71442
 
If it does, then yes, but VIX=150 implies a crash, which has an
extremely low probability in general. High vix means high
premium on calls, which will fall quickly as the market rises
and vix crashes. So, if you own some deep out of the money
calls, you can still lose money as the market rises because
of declining call premiums. Actually, with VIX=150 I doubt
any derivatives will be trading!