Comments on: I Hedged This Insane Market Runup with a Put Spread – Here’s How http://www.darwinsfinance.com/put-spread-hedge/ Financial Evolution: Education, Adaptation, Achievement Mon, 06 Feb 2012 15:43:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: links for 2010-06-01 // Aaron Gladdershttp://www.darwinsfinance.com/put-spread-hedge/#comment-6117 links for 2010-06-01 // Aaron Gladders Wed, 02 Jun 2010 01:34:06 +0000 http://www.darwinsfinance.com/?p=2093#comment-6117 [...] I Hedged This Insane Market Runup with a Put Spread – Here’s How | Darwin's Finance (tags: trading.options trading) Tags Categories delicious [...] [...] I Hedged This Insane Market Runup with a Put Spread – Here’s How | Darwin's Finance (tags: trading.options trading) Tags Categories delicious [...]

]]> By: High Yield ETF Inflows are Outrageous - How Long Can This Continue?http://www.darwinsfinance.com/put-spread-hedge/#comment-5283 High Yield ETF Inflows are Outrageous - How Long Can This Continue? Thu, 15 Apr 2010 02:11:17 +0000 http://www.darwinsfinance.com/?p=2093#comment-5283 [...] Long HYG in self-directed IRA account.  Currently hedging portfolio with an SPY Put Spread in Taxable Trading Account.  No other holdings in aforementioned [...] [...] Long HYG in self-directed IRA account.  Currently hedging portfolio with an SPY Put Spread in Taxable Trading Account.  No other holdings in aforementioned [...]

]]> By: Darwinhttp://www.darwinsfinance.com/put-spread-hedge/#comment-5118 Darwin Fri, 02 Apr 2010 02:20:53 +0000 http://www.darwinsfinance.com/?p=2093#comment-5118 <a href="#comment-5111" rel="nofollow">@Mark Wolfinger</a>, Yes, good point Mark, as volatility continues to decline, any historical options "buyers" didn't get a good bargain. I should focus on "comparatively", they are cheap since the VIX was double/triple where it's at now just several months back. @Mark Wolfinger, Yes, good point Mark, as volatility continues to decline, any historical options “buyers” didn’t get a good bargain. I should focus on “comparatively”, they are cheap since the VIX was double/triple where it’s at now just several months back.

]]> By: Mark Wolfingerhttp://www.darwinsfinance.com/put-spread-hedge/#comment-5111 Mark Wolfinger Thu, 01 Apr 2010 14:06:58 +0000 http://www.darwinsfinance.com/?p=2093#comment-5111 "options are cheap, so I'm a buyer" Be very careful. Yes, options are cheap compared to where they have been priced over the past year. But they are still priced much higher than the realized market volatility. In simple terms, that means: recent option buyers have not seen the volatility they paid for. That means the options turned out to been expensive. I know it's not proper to plug my blog, but it is devoted to the options rookie, and Darwin and I both want you to get a good education before trading options. Options for Rookies. “options are cheap, so I’m a buyer”

Be very careful. Yes, options are cheap compared to where they have been priced over the past year. But they are still priced much higher than the realized market volatility.

In simple terms, that means: recent option buyers have not seen the volatility they paid for. That means the options turned out to been expensive.

I know it’s not proper to plug my blog, but it is devoted to the options rookie, and Darwin and I both want you to get a good education before trading options.
Options for Rookies.

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