Legitimate hedges are disappearing from the market because of this. The options market makers are SOL in the financial stocks right now. When you can't hedge, look out - everyone's going to get smacked in the face by the volatility. The financials up or down 20% in a week will become the norm, not the exception.
posted on 07/27/2008 10:40:52 PM PDT
by July 4th
To: July 4th
Legitimate hedges are disappearing from the market because of this.
I agree and many (non-naked) shorts have been scared out even with no legitimate reason. I have heard even puts have diminished. This is truly a recipe for disaster, if that phrase hasn't been used already in this thread.
posted on 07/27/2008 10:43:37 PM PDT
(Acerbic by nature, not nurture)
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