Tuesday, July 26, 2011

Buying Options

The U.S. may or may not default on its debt (I am going with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 not), may or may not be downgraded (I think it is likely within cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 next 12 months), and may or may not be a completely dysfunctional mess in Washington (okay, this is a definite). In times like this, I would like optionality (calls and puts) even if it were expensive.

But, lo and behold... cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 VIX is currently priced below its 5, 10 and 20 year average.



Which is why I am buying options....

2 comments:

  1. Agreed but VIX measures vol on stocks, not bonds. Wouldn't that be a limit to your strategy ?

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  2. I am buying vol on stocks, as well as junk bonds, commodities, and treasuries. All too low (IMO).

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