SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?


To: Broken_Clock who wrote (6998)1/29/1999 4:08:00 PM
From: Lucretius  Read Replies (1) | Respond to of 14427
 
I have noticed the same thing. options players aren't stupid. They can see the volatility and know there's a change in the wind approaching fast.



To: Broken_Clock who wrote (6998)1/29/1999 4:10:00 PM
From: SJS  Read Replies (1) | Respond to of 14427
 
Yup, that's the demand side. The MM's going to increase the price because everyone thinks this markets going down, and he's going to get his increase costs for that risk. This is the time you make money in the market by SELLING that risk. It's hard to do, but the options are way skewed, and premiums are really there for the asking.

Not to be dumb about this but while I am NOT buying puts, or shorting everything under the sun, I AM writing CC's. The premiums are good, and I think it's better to take in money and lose the stock if it continues to go up, than expend money via BUYING puts and watch them erode.