561–570 of 1001 posts
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US fertility rate is approx. 1.8, well below population sustainability. If it weren't for immigration (a political policy question), the US would have negative population growth too.
We’re about to discover that uncontrolled immigration != societal regeneration, unfortunately.
Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? > “There’s a reason why they have those circuit breakers -- it’s to give people time to come back from panicked feelings,” Seems strange that the market is kinda able to be manipulated like that. I'm not saying this is a bad move, just surprised that someone can do it.
> Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? This is a dangerous game, in that it is indeed revealing the artificial, make-belief, nature of financial markets.
The market was up over 30% last year, but GDP growth was certainly not 30%.
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Okay thats fine, but who implements/decides these circuit breakers ? And what purpose to they serve only to limit a mass sell off ? Nice point about only 2 daily. But still seems crazy.
AFAIK people can still trade in private, just not on the NYSE. So don't worry, it's only us regular guys that get screwed. Big firms can still contact each other to make deals.
If anything this is helps the little guy, by not completely crushing their stock value, and hurts the big guys who can outlast huge swings (something little guys cannot).
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When China put 10% of the worlds population on travel restrictions, a put on SPY with a strike of 300 expiring this Friday was 29 cents. The optimism is frankly unbelievable.
A few weeks ago, I spent $730 to buy 73 SPY put option contracts expiring this Friday with a strike of $270, so about 10 cents per share. Unbelievable. I've been selling them over the last week and just finished getting out today with a realized gain of about $30k. Wish I had put $50k in instead of $1k, but I suppose that's always the lament when an ultra-risky trade goes your way :)
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No. This is just one of several places where the laws systematically favor the bulls.
Because bulls and bears aren’t equal. The laws should be favored towards not destroying the economy needlessly.
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* It's very difficult to sell a market to zero, but impossible to buy it to infinity.
Has any stock or financial instrument ever been valued at infinity? I don't know enough about finance to rule that out and it seems unlikely but at least possible. For instance here is a toy example of unbounded value: Consider a market for a stock in which the only market participants are two bots with the behavior that they trade the stock back and forth at an asymptotically increasing price. The buys are backed by…
Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? > “There’s a reason why they have those circuit breakers -- it’s to give people time to come back from panicked feelings,” Seems strange that the market is kinda able to be manipulated like that. I'm not saying this is a bad move, just surprised that someone can do it.
It turns out nobody really trusts the "free market" :)
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What is the end game with this strategy? If you sell the puts today to capture the profits, do you also sell your equities? If you don't sell your equities isn't there a chance the slide further? If you hold the puts to maturity why buy them at all?
The end game is to save the value of my account without having to sell holdings I want to keep long term for tax reasons. I'm up 8% for the year instead of down 15%.
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When China put 10% of the worlds population on travel restrictions, a put on SPY with a strike of 300 expiring this Friday was 29 cents. The optimism is frankly unbelievable.
That’s not optimism. That’s options pricing driven by implied volatility and the current price.
In this way, the poster you're replying to is right. The reason premiums were so low was that IV was so low, but that was because no one expected the S&P 500 to drop from 3350 to 2750 in a few weeks. The IV is pretty high now, but it's still bouncing around much more than the actual volatility of the SPY index itself. I've seen everything from 30-150% over the past few weeks.