Wednesday, November 19, 2008

Quote for the Day

From the WSJ MarketBeaters blog, on the strangeness of just what 75% VIXy means/implies(!):

...some people have been taking positions in the likes of put options on the S&P at 750. These are expiring at the end of the week and they’re trading at about $3, says William Lefkowitz, chief options strategist at vFinance Investments. A goofy bet like this would normally cost the buyer a nickel, because it’s so preposterous. Not anymore.

Among the culprits in today's selloff:
  • -Paulson's walk-away
  • -A couple of defaults (waiting for confirmation) inside CMBS, spreading a new round of panic over of asset quality among the banks
  • -A political uncertainty-tsunami coming from Washington, who are heckling over ... the kinds of details that will be rounding errors if the big picture is ... "lost".
  • -A weak CPI

No comments: