Comments on: News Weary http://spiralcalendar.com/2010/03/news-weary/ Christopher Carolan on Financial Markets & Lunar Cycles Fri, 18 May 2012 09:30:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BearOfNH http://spiralcalendar.com/2010/03/news-weary/comment-page-1/#comment-1502 BearOfNH Thu, 04 Mar 2010 15:32:18 +0000 http://spiralcalendar.com/?p=3439#comment-1502 If you envision a sharp reversal downward, perhaps owing to Friday's employment report, you might want to consider CBOE VIX call options, as they are currently historically cheap. Note the March series expires on the open the 17th (Wednesday). Of course when something is cheap it is usually cheap for a reason. Then again, many subprime mortgage CDS'es were dirt cheap in 2006 and ended up paying off big time. There's also VVX, an ETN which is priced off the VIX futures. But ETN's carry their own risk, in this case related to Barclay's solvency, but I'm no expert on the matter. If you envision a sharp reversal downward, perhaps owing to Friday’s employment report, you might want to consider CBOE VIX call options, as they are currently historically cheap. Note the March series expires on the open the 17th (Wednesday).

Of course when something is cheap it is usually cheap for a reason. Then again, many subprime mortgage CDS’es were dirt cheap in 2006 and ended up paying off big time.

There’s also VVX, an ETN which is priced off the VIX futures. But ETN’s carry their own risk, in this case related to Barclay’s solvency, but I’m no expert on the matter.

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