The problem is, with automated trades set up by many institutional firms, any dip in the market will trigger automatic buys keeping the market artificially up even when the underlying securities might be inflated. It'll take more downward momentum on S&P stocks to really push the market down.
Options traders are bracing for a stock-market crash
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Re: Options traders are bracing for a stock-market crash
#12Hopefully it gets housing/real estate as well because I'd really like to buy a house in the next ten years.
How are you planning to buy a house without cashing out stock investments?
Re: Options traders are bracing for a stock-market crash
#13Turns out asset-light GenZ likes Trump quite a bit: https://www.newsweek.com/donald-trump-approval-rating-genz-p...
Re: Options traders are bracing for a stock-market crash
#14Hopefully it gets housing/real estate as well because I'd really like to buy a house in the next ten years.
How are you planning to buy a house without cashing out stock investments?
Comments like these help remind me a large fraction of this website lives in an alternative reality.
Re: Options traders are bracing for a stock-market crash
#15vix ticker graph was higher on 3 other dates during last year. In two cases it was very much higher: 40 vs current 24.
Re: Options traders are bracing for a stock-market crash
#16if everyone's expecting a market crash and prepared for it (that means it should already be priced in), how can there still end up being a crash? seems counter intuitive.
I will respond to this by posting a shitpost from reddit. In reality the market can never be perfectly efficient or their would be no room for profit. Don't even ask the question. The answer is yes, it's priced in. Think Amazon will beat the next earnings? That's already been priced in. You work at the drive thru for Mickey D's and found out that the burgers are made of human meat? Priced in. You think insiders don't…
Love it. I know it's satire, but I call the real thing the "efficient markets fundamentalism". For some people really is blind faith.
Re: Options traders are bracing for a stock-market crash
#17Hopefully it gets housing/real estate as well because I'd really like to buy a house in the next ten years.
In times of economic upheaval/resets, labour does not find bargains, capital does.
Housing prices might take a hit, but by the time they pop up on the open market, you won't be buying from a distressed seller, but rather a numbered corporation domiciled in Delaware that's picked up all those properties in cash, cheap.
Re: Options traders are bracing for a stock-market crash
#18Earlier quoted context omitted.
How are you planning to buy a house without cashing out stock investments?
Comments like these help remind me a large fraction of this website lives in an alternative reality.
Why? Where else would the money for the down payment come from? People don't keep tens of thousands in their checking accounts.
Re: Options traders are bracing for a stock-market crash
#19if everyone's expecting a market crash and prepared for it (that means it should already be priced in), how can there still end up being a crash? seems counter intuitive.
You know how risk is "priced in" right? It's an art, not a science. They buy/sell financial instruments to hedge that risk, like collateralized bonds or credit default swaps. Plenty of people lose big money when these bets don't work out.