DL

DL Says:
April 16th, 2009 at 2:36 pm

If we get another panic sell-off in the stock market, the dollar should rally. But after that, USD is toast.

DL Says:
April 16th, 2009 at 3:39 pm

When Mannwich finally liquidates all his shorts, the market’s going to drop 20% in a week.

DL Says:
April 16th, 2009 at 8:48 pm

Leftback @ 8:08

“…if you had a complex play on - something like a bet that the SPX would be between 600 and 700, for example and then the market rallied far out of that range..”

I don’t think one could do this with options… potential for profit using a “spread” or a “butterfly” only exists for a fairly narrow trading range.

………..

However, if someone kept shorting naked calls all the way up, he’d be forced to buy them back. If a lot of people were doing that, it would increase call option premiums… that in turn might entice arbitrageurs to come in and simultaneously buy the underlying stock and short the calls against them.

In any case, I don’t really think this is driving the rally.