Comments on: Citigroup’s volatility implosion (zombies aren’t volatile) http://blog.atimes.net/?p=932 Asia Times Online weblog Thu, 09 Sep 2010 18:10:42 +0000 http://wordpress.org/?v=2.6.3 By: Inner Workings » Blog Archive » The volatility implosion, again http://blog.atimes.net/?p=932#comment-1791 Inner Workings » Blog Archive » The volatility implosion, again Wed, 20 May 2009 11:26:07 +0000 http://blog.atimes.net/?p=932#comment-1791 [...] the day was the collapse of VIX to below 30% for the first time since Sept. 15. Falling volatility, I began arguing April 27, was the characteristic trade in an economy in which the Imperial Court set prices, arranged [...] [...] the day was the collapse of VIX to below 30% for the first time since Sept. 15. Falling volatility, I began arguing April 27, was the characteristic trade in an economy in which the Imperial Court set prices, arranged [...]

]]> By: einhorn http://blog.atimes.net/?p=932#comment-1507 einhorn Tue, 28 Apr 2009 23:15:42 +0000 http://blog.atimes.net/?p=932#comment-1507 You ought to start emailing an investment newsletter to Inner Workings participants. Buying low and selling high is a good idea, especially when you know what "low" and "high" is relative to the cyclothymic behavior of the market lately. You ought to start emailing an investment newsletter to Inner Workings participants.

Buying low and selling high is a good idea, especially when you know what “low” and “high” is relative to the cyclothymic behavior of the market lately.

]]> By: einhorn http://blog.atimes.net/?p=932#comment-1506 einhorn Tue, 28 Apr 2009 23:12:33 +0000 http://blog.atimes.net/?p=932#comment-1506 Your comments about Zombie Banks over the last few months have been very clever. I have a feeling that people listening to your advice lately could have made a lot of money taking advantage of the market's slow learning and odd gyrations. How well have you done lately profiting off of animal spirits, etc.? Your comments about Zombie Banks over the last few months have been very clever. I have a feeling that people listening to your advice lately could have made a lot of money taking advantage of the market’s slow learning and odd gyrations. How well have you done lately profiting off of animal spirits, etc.?

]]> By: DodgerUSA http://blog.atimes.net/?p=932#comment-1505 DodgerUSA Tue, 28 Apr 2009 21:14:43 +0000 http://blog.atimes.net/?p=932#comment-1505 Very upset about this -- while I sold about 2/3 of my common stock position near the top, I got a little too cute with my limit orders and stop losses and ended up not doing a thing when the market continually gapped lower to open the day. Now I'm stuck with a position I don't really want to be in. Mr. Goldman is right that covered calls aren't exactly paying right now (I'm paraphrasing his post). I am debating whether to hold out for Q2 earnings or just take a bit smaller profit... ? I don't see another catalyst, but perhaps we can range trade up a bit! Very upset about this — while I sold about 2/3 of my common stock position near the top, I got a little too cute with my limit orders and stop losses and ended up not doing a thing when the market continually gapped lower to open the day.

Now I’m stuck with a position I don’t really want to be in. Mr. Goldman is right that covered calls aren’t exactly paying right now (I’m paraphrasing his post). I am debating whether to hold out for Q2 earnings or just take a bit smaller profit… ? I don’t see another catalyst, but perhaps we can range trade up a bit!

]]> By: jim http://blog.atimes.net/?p=932#comment-1499 jim Tue, 28 Apr 2009 15:10:58 +0000 http://blog.atimes.net/?p=932#comment-1499 Ah yes. This is my second month of debit spreads on C and believe me, April was much more profitable. Basically a 2 X 3 debit spread (buy 2's sell 3's) yielded 100% (and it hit the max). This month, when C was above 3 (around 3.17) I did the 2 X 3 spread (bought 2's sold 3's) and if C closes above 3 at expiration it will only yield about 30%. Right now the 2 X 3 still looks cheap though. For example, the 2's are selling at practically zero premium (maybe a penny). The 3's, which are out of the money as of this morning are over $0.30. The spread would cost under $0.70 (maybe less than $0.65) with the potential of making about $0.35. That's more than 50% (which is better than where I got in) IF C closes above 3. Break even would be at about $2.60 - which is better than mine, at $2.75. Ah yes. This is my second month of debit spreads on C and believe me, April was much more profitable. Basically a 2 X 3 debit spread (buy 2’s sell 3’s) yielded 100% (and it hit the max). This month, when C was above 3 (around 3.17) I did the 2 X 3 spread (bought 2’s sold 3’s) and if C closes above 3 at expiration it will only yield about 30%.

Right now the 2 X 3 still looks cheap though. For example, the 2’s are selling at practically zero premium (maybe a penny). The 3’s, which are out of the money as of this morning are over $0.30. The spread would cost under $0.70 (maybe less than $0.65) with the potential of making about $0.35. That’s more than 50% (which is better than where I got in) IF C closes above 3.

Break even would be at about $2.60 - which is better than mine, at $2.75.

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