tag:blogger.com,1999:blog-897456774486153841.post5841162678079372735..comments2024-03-28T06:07:36.391-07:00Comments on VIX and More: Markets Continue to Fall, VIX Relatively FlatBill Lubyhttp://www.blogger.com/profile/01241003017364820134noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-897456774486153841.post-82423280695819110122009-03-11T17:54:00.000-07:002009-03-11T17:54:00.000-07:00BillDo you have a view on the fact that the Put Ca...Bill<BR/><BR/>Do you have a view on the fact that the Put Call ratio has put in some very low readings recently? It's 10 day MA has been very low relative to where the market is.<BR/><BR/>It suggests optimism. However, I read someone say that the low priced banking stock meant that buying a call on them was a cheap way to speculate and may be artificially increasing the number of puts. Do you think that's likely?<BR/><BR/>DouglasAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-66629852511135547092009-03-07T10:38:00.000-08:002009-03-07T10:38:00.000-08:00assuming a large part of the selling is due to ind...assuming a large part of the selling is due to individual and institutional liquidation (or moving more 80-20 equities to 20-80 equities), there wouldn't be large jumps in $VIX as a liquidating hedge fund won't need to hedge.<BR/><BR/>my $0.01.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-32788596809424390392009-03-07T05:22:00.000-08:002009-03-07T05:22:00.000-08:00I think the high continued implied volatility (wit...I think the high continued implied volatility (without capitulation) reflects uncertainty on the part of option sellers.<BR/><BR/>It seems like a lot of big companies drank the derivatives kool-aid, and thus we're left wondering what F500 company is going to be brought to its knees next. On the upside, the right kind of government intervention could bring a huge pop.<BR/><BR/>So, I can imagine option sellers not being eager to sell cash secured puts to get long on unfairly battered companies - Warren Buffet is getting taken to the cleaners - while on the other hand selling uncovered calls has the potential to blow up in your face if there's a bear market rally, which the technicals indicate should happen any day now.<BR/><BR/>Meanwhile the guys who actually buy or sell stock are paralyzed, and the grind downward continues.Max Leveragehttps://www.blogger.com/profile/04986053651630858144noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-30591477602791104372009-03-06T12:07:00.000-08:002009-03-06T12:07:00.000-08:00A close of 1.08 or above would be a buy signal. A...A close of 1.08 or above would be a buy signal. Actually Monday was a buy signal, with a close of 1.082.Bill Lubyhttps://www.blogger.com/profile/01241003017364820134noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-33757400407698019792009-03-06T11:56:00.000-08:002009-03-06T11:56:00.000-08:00VIX/VXV hovering around 1.08Isnt that a buy signal...VIX/VXV hovering around 1.08<BR/>Isnt that a buy signal (dare I use that b word)?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-33045329559494153352009-03-06T11:51:00.000-08:002009-03-06T11:51:00.000-08:00potential market bottom in a week or two when vix ...potential market bottom in a week or two when vix goes more extreme. im expecting more capitulation.stonebathttps://www.blogger.com/profile/13067880752297712041noreply@blogger.com