Monday, November 19, 2012

Guest Columnist at The Striking Price for Barron’s: Calm Down and Exploit Others’ Anxieties

On Wednesday I had an opportunity to serve as a guest columnist for The Striking Price on behalf of Steven Sears at Barron’s for the eighth time, focusing my attention on some of the early findings from the VIX and More Fear Poll in Calm Down and Exploit Others’ Anxieties.

In some respects, the most recent Barron’s article is a companion piece to another Barron’s article I penned in May: Be Greedy While Others Are Fearful. This time around I delve into some of the emerging behavioral finance aspects of the survey results, specifically related to geographical and temporal proximity bias. I also discuss the merits of a SPY short straddle trade as well as long VIX puts as a means to take advantage of some market distortions due to that bias.

As far as the most recent Fear Poll goes, this week the race for the top spot looks as if it will go down to the wire and for the first time so far, there are more than two viable candidates for the top slot. [If you have not voted in the weekly poll yet, now is as good a time as any…]

Related posts:

A full list of my Barron’s contributions:

Disclosure(s): none

blog comments powered by Disqus
DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
 
Web Analytics