Garbage Insurance on Fantasy Island ~ The Risk Averse Alert

Thursday, November 01, 2012

Garbage Insurance on Fantasy Island

The question is, have the bankrupt pricks lowered the cost of insurance enough to raise the floor under the market?


$VIX

I ask because, as sure as nature itself is accommodating lower Manhattan's love of garbage, so too is Chicago...


$CPC

Will today's evident necessity to increase put option protection be enough to keep the market's floor well north of H-e-double hockey sticks? Probably not. Rather more likely will be a floor built the old fashioned way ... and at a price well north of the present day's Fantasy Island markdown.


Word on the Street
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.


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