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Archive for April 2011

VIX, SKEW and CSFB – are you afraid yet?

First of all, this post is simply another (simplified, I hope) version of http://www.zerohedge.com/article/forget-vix-skew-tells-true-story-about-market-risk. I claim no credit for any original thought in this post.  This is still fairly wonkish, and you would need a understanding of options to understand this post (and/or call me out on a mistake). Second, CSFB here doesn’t stand for … Continue reading »

Market Outlook at the end of Q1 2011

I believe that the S&P 500 is overpriced and due for at least 8-10% correction in the coming 9 months. I would take advantage of this mispricing using a long put option on S&P 500 Mini options (XSP). Very simply put, the S&P will rise if the component firms’ sales increase, margins improve, or if … Continue reading »

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