Posted by & filed under Growth & Valuation, Market Analysis.

Description:  The biggest sell-off in the Standard & Poor’s 500 Index since March is rewarding options traders who bet on a surge in volatility with gains of 75 percent.


Date: 01/23/2010


Questions for discussion:

  • What sort of risk is involved with these instruments?
  • Who would be interested in them?
  • Do you agree with the comment that “People are betting on higher levels of volatility in the short term.” Explain your answer.

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