Like any good option trader, try to keep open two positions. Albeit you keep an option spread relatively tight with stop losses as close as you can to supports and resistance on both call and put options. Yes this post Risk aversion off. Risk now on (Markets) was written a day for the big sell off (30th October 2009) and this post Investment update October 2009 - It's cracking up (economically speaking) - risk aversion on the rise was written when risk aversion occurred. Both posts cover, in a journalistic sense, an option situation.
In saying that volatility has caused risk averse trading to take place. Volatility via CIT bankruptcy (confirmed with a 2 billion hit to US taxpayers - US Treasury loans) and US consumer sentiment (tanked)
No comments:
Post a Comment