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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: clutterer who wrote (81601)	10/8/2008 9:17:49 PM
From: Real Man	Read Replies (2) \| Respond to of 94695

The decline seems very unreasonable already. There are a lot of companies with credit ratings that suffered due to the blowup of corporate credit spreads, thus resulting in severe shorting of their stock. However, the state of these companies is much further from bankruptcy and they have much better real credit rating than what the market assumes. The blowup of credit spreads happened due to the CDS, the origin of it all. In other words, there are certainly some really good bargains out there (some of them are mines -g- ) If the bad bad derivative bubble blowup BK really happens, puts will likely become illiquid since the MM will go BK. And, of course, puts are very high risk at this VIX. The less risky strategy is to wait for the deep bargains the derivative melt produces and snatch them up. You may be able to get those for pennies on the dollar.