lots of puts on FAZ
It’s a risky trade, but it’s worth it for this reason.
1.) The XLF now trades at $6.30.Ă‚Â When a stock or index gets to that low a price it’s volatility as compared to the market jumps.
2.) With FAZ (priced at $97) we now have an index that should drop $2.91or 3% [...]
Financial markets are actually incredibly efficient.
Before you stone me for heresy, let me explain.
Typically, the phrase “Efficient Markets” carries the connotation that markets are efficient at the valuation of assets. This is laughable and categorically not the case. But there is something that markets are very efficient at: Seeking out liquidity. [...]
