Prolonged periods of tedium often precede explosive changes in volatility, and that’s probably why expectations of ‘something big’ appear to be waxing in the Rick’s Picks chat room lately. It’s been nearly a month since stocks sold off hard in August, and the choppy bounce from the lows since then has depressed option ‘implieds’ to levels where straddles are starting to look enticing. This seduction has lured many a trader onto the rocks, but the urge need not be fatal. Check out today’s VIX tout for a trade suggestion that offers a less daring approach. If you don’t subscribe, click here for a free two-week trial subscription. It will give you instant access not only to Rick’s daily trading ‘touts’ and intraday updates for stocks, options and index futures, but to a 24/7 chat room that features seasoned traders from around the world and actionable ideas in real time.
A Ticking Time Bomb?
- October 20, 2015, 9:55 am
I think we have surpassed the insanity of the previous run up before the 2009 reality check.
On the radio this morning I heard an ad for a new, improved, housing derivative.
Someone is offering to give you up front money in exchange for a share of any future appreciation of your house!
I have only heard this ad once so far, but I am positive that was the deal.
And, in addition, the number of brand new cars I see out here has surpassed the erstwhile R E bubble.
And this time it is lots and lots of German iron (plastic?).
Beemer, Benz, Audi, no sign of the Hummer infestation of the last bubble.
And the FHA is pushing the good old 3% down home loan.
And the Feds say mortgage lenders must consider Section 8 payments when deciding on offering a mortgage.
Are we topping out?
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Nice capture, JJ. If you can figure out a way to bet against the housing lender, please let us know. RA