Monday, March 10, 2008

Put to Call Everest

What number comes after infinity?

4 comments:

gaius marius said...

this has got to be close to "it", imo. the ISEE all securities is 54 late in the day, a near record low -- the 5-, 10-, 20- and 50-day sma are all at record lows.

either the option-buying crowd is correctly forecasting a disaster, or there is a turnaround imminent.

Charles Butler said...

Just a guess, but...

Keep in mind that we are currently living in a world of margin calls in which presumed hedges that cannot reliably be marked to market will not be counted against whatever position you hold that is losing money. Exchange traded puts are among the few instruments that don't fall into that category - and they have to look cheap (no matter the price) as long as the equity markets continue to ignore the new reality.

Jeff Pietsch CFA, Esq said...

Did this chart change?

Bill Luby said...

Two quick things:

1) FWIW, it looks like a lot of options activity on MIR was responsible for moving the ISEE number during the day.

2) Currently the CPCE is at 0.99 -- which gives the weekly CPCE chart the appearance of a triple top (Nov, Jan and Mar)

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