Friday, June 19, 2009

Geopolitical Risk-Witchmaniupulation


Oh my gosh -I hearing the phrase "inflation fears" wow that was fast.
Some people will tell you to stay completely out the game today as rollovers from expiration will befuddle pricing models and take out stops faster than a speeding car that cuts a street corner too tightly.  I say if you are a trader do not stand in front of that "drunken Bus driver"
but after an extreme move in either direction opportunity obviously lurks. 


There are some events could change the game I am trying to look into it but Bloomberg has reported a pipeline in Nigeria has been  exploded-The Iranian situation could also destabilize the region and cause a huge spike in Oil prices don't go run out and buy 
just be aware the rules can and will change at any moment and what we consider
expensive today could look like a steal tomorrow.

Secondary Account Advisement

Sell calls against long stock in the new  front month(not june) to take in premium and higher volatility has burgeoned prices Im not trying to lose the stock so a guide for pricing would be 10% of the price of underlying this would protect against a probable pullback.










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