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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (82091)	7/25/2008 7:06:16 PM
From: The Vet	Read Replies (1) \| Respond to of 116555

Selling deep in the money naked calls is a good substitute for short selling if the seller is really confident that the stock will fall. Perhaps opening these low strike options is in response to the naked short selling restrictions that seem to be going around these days...

To: ajtj99 who wrote (82091)	7/25/2008 9:39:33 PM
From: XBrit	Respond to of 116555

A couple of small banks failed tonight, total almost $4B in assets, 28 branches. The drumbeat continues. fdic.gov

To: ajtj99 who wrote (82091)	7/26/2008 12:56:03 PM
From: mishedlo	Respond to of 116555

FDIC Sponsors Subprime Mortgage Mess globaleconomicanalysis.blogspot.com The Wall Street Journal is reporting FDIC Faces Mortgage Mess After Running Failed Bank. Federal officials heap much of the blame for the subprime mortgage mess on lenders, claiming they recklessly made too many high-cost home loans to borrowers who couldn't afford them. It turns out that the U.S. government itself was one of the lenders giving out high-interest, subprime mortgages, some of them predatory, according to government documents filed in federal court. ... Mish

To: ajtj99 who wrote (82091)	7/28/2008 7:11:03 PM
From: John Pitera	Read Replies (2) \| Respond to of 116555

Hi AJ, the option makers and writers can develop all types of delta neutral strategies. Which simply means that they don't care what happens to the stock price they are just capturing implied volatility premiums when they grown too large. It's simple amazing that GS has an option with a $10 strike price for Jan 09. when there is nothing below $140 for sept. GS has $10.00 strikes for Jan. 2009, but nothing below $70 for Oct. and nothing below $140 for Sept. It has $120 strikes for August thanks for highlighting some of these Way Out of the money puts on the big Broker Dealers There is big time concern about the dimensions of this once in a 3 generation credit crisis. It really has appearances of being the biggest Credit meltdown since 1720. As a matter of fact, maybe in the really big picture, Prechter had it right when he was talking in the 1990's of this final wave being the final 5th wave "blowoff" extension which would complete the total five waves up since the total black hole that was the 1720 credit market mania and meltdown spearheaded by Scotsman John Law's ability to create a credit creating monster with central banking abilities for the kingdom of France. I'm thinking that 08 08 08, the opening of the olympics is going to be a time of major global stressors. The end of the world quality of Air and Pollution in beijing and China is going to become a major global talking point and may well feed some global hysteria regarding an irreversible climate destabilization.... China having to shut down their 15-20% GDP growth in the Beijing area to try to put lid on their best of Breed, World Class air pollution, maybe this is the fundamental development that has shown the structural limitation of the Chinese, Indian etc economies to growth this fast and a more fully recognized and deeper globally sycronized recession and/or contraction is going to be an additional headwind for financial assets. John ------------- BEIJING: Less than two weeks before the Olympics, Beijing's skies are so murky and polluted that the authorities are considering emergency measures during the Games beyond the traffic restrictions and factory shutdowns that, so far, have failed to clear the air, state media reported on Monday. For the past five days, Beijing has been a soupy cauldron of humid, gray skies. Local pollution ratings have exceeded the national standard for acceptable air since last Thursday, despite a temporary air pollution control plan that began on July 20. Under that plan, officials have used odd-even license plate restrictions to reduce daily traffic by two million vehicles - more than half the city's total. Production at some factories also has been curtailed in Beijing and outlying areas. But on Monday, China's official English-language newspaper, China Daily, ran a front-page story under a boldfaced headline: "Emergency green plan for Games." The article warned that officials may force far more vehicles off city streets - possibly 90 percent - and temporarily close more factories. No timetable was announced, but a senior city engineer told China Daily that officials "would inform the public as early as possible about the details of the plan." The Olympics opening ceremony is on Friday of next week. iht.com