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


To: GROUND ZERO™ who wrote (81771)10/10/2008 6:49:14 PM
From: Real Man  Respond to of 94695
 
Ripe for a crash if nothing is done, as silly as it sounds.



To: GROUND ZERO™ who wrote (81771)10/10/2008 6:52:27 PM
From: Real Man  Read Replies (3) | Respond to of 94695
 
Ripe for an expiration crash if nothing is done, as silly as
it sounds. The last two expirations the PPT resorted to banning
shorting and stuff to prevent a crash. Evidently, they were
very scared to leave the market alone. At this VIX the market
may have passed the point of no return, since options values
increased 10-fold.

When things are too far out of whack, options tend to
accelerate the move. 1987, but a much, much larger "portfolio
insurance" market. Hopefully not, but it's one scary
possibility.

Given how large the options market is, things can overshoot 0
then. <G>