It’s make more sense to ban people in Seattle and Bay Area from traveling within the US.
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Trump is on board . The panic is complete. I like the rumor of suspending IRS payments.
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We will hit the circuit breakers again tomorrow. Another 7 % down day
Agreed. This is what happens when Trump wants to appear like he’s doing something and keeps going for what made him popular (travel bans) rather then what makes sense.
The rapid spread of the coronavirus outside China spurred turmoil in financial markets this week. Investors say hedging activity by options traders might have made it even worse.
Market volatility has roared back, smashing a streak of tranquility that helped pull major U.S. stock indexes to records just days earlier. Waves of selling dominated the week and the S&P 500 closed down Thursday more than 10% from its recent high, a decline known as a correction. The selloff sent listed options activity to the second-highest level ever earlier this week.
A surge of coronavirus cases outside China stoked worries that the epidemic would weigh on global growth, as businesses remained shut and travel was curtailed around the world.
There were technical factors at play, too. Derivatives activity and heavy selling from funds that tend to make knee-jerk buying and selling decisions based on the level of market volatility created a perfect storm for the Wall Street selloff, analysts said. The S&P 500 fell for the sixth consecutive session Thursday, logging its biggest percentage decline since August 2011.
Marko Kolanovic, global head of quantitative and derivatives strategy at JPMorgan Chase & Co., estimated that more than $100 billion in selling Monday and Tuesday was fueled by options hedging and trading strategies based on market volatility. Meanwhile, liquidity—or the ability to get in and out of positions—also worsened, Mr. Kolanovic said, further stressing the broader market.
to @hanera and @jil and others. what’s the furthest out you can buy a VOO option. I only see till Oct 2020 in ME. Are 2021 options even available for VOO?
thanks
Now Trump is walking back travel ban. News has it he meant to ban travel to Italy, ended up saying all Europe. Now trying to walk it back (e.g. he just exempted the UK from the ban). Now extended to a bunch of other countries. Also said everything people and cargo was banned. Now walking back cargo later. What a cluster. Can someone get him to resign?
Edit. Did he get everything wrong? The insurance folks are claiming that he’s flat out wrong and they did not agree to waive costs for treatment. I think almost everything he said in the speech has now been walked back or denied.
I buy VOO shares only to be kept permanently.
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I can go out to December, 2022 on SPY. If I remember right, I had to enable seeing that far out in my interactive brokers account. 275 calls closed at $36.18.
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You can see 2 years future options normally available to us.
I do not know what you are trying to do? Options are riskier than shares. I can provide some example what Ray Dalio does.
Assume he has SPY 100 shares he bought today at $95.95 at close of 10/8/1998, he paid $9595 and its value is now $27446 ($274.46*100). He does not want sell, but wants to protect his net worth at same level or near same level.
If he expects SPY may go down to $220 by Apr 17, 2020, he will buy a protective puts expiry Apr 17, 2020 (or few months beyond) strike price $220 at $0.91 = $91 purchase price.
If SPY drops in value to $220, his puts may increase the value which will compensate. At some point in future when he thinks market bottomed, he will sell his put for profit, but hold the SPY as such.
This way, he will pay very less tax on capital gain, only for put sale, but hold the SPY for long.
I said this very simple strategy, but he hold 150 Billion assets, big amount is required for him.
This is what I know. I am too poor about options, please do research or read some options. There is no Q&A as I do not know the answer or I may provide wrong answer (with limited Knowledge).
I was trying to see if buying LEAPS for VOO vs slow gradual accumulation made sense or not so wanted to take a look at the options charts. From what I can see (with the current volatility), options prices are so expensive that LEAPS may not make sense for VOO
When IV is too high, just buy shares.
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Sell puts so you get paid for the IV.
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First, this is not the time for buying VOO or SPY stocks or options as market is not bottomed yet. See how 2007-2009 went, it started Oct 2007, but bottomed Mar 2009 with 56% drop. We are just in 20% drop, much more to go. Al least, all volatility must go, wait until then.
Even if you buy, go for stocks (like hanera said) than LEAPs as time decay may kill if there is down swing (which we do not know).
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“Customers are using the market volatility to add equities to their portfolio,” Fidelity’s Robert Beauregard told Yahoo Finance.
The most common stocks people are lapping up? Apple (AAPL), Microsoft (MSFT), Inovio Pharmaceuticals (INO), Tesla (TSLA), and Amazon (AMZN). (Inovio said last week it was accelerating the timeline for development of a coronavirus vaccine and expects to start human trials next month in the U.S.)
For index funds and ETFs, SPDR S&P 500 (SPY) saw 7 buys to every sell, iShares Core S&P 500 (IVV) 8.8, and Vanguard’s S&P 500 (VOO) a whopping 9.
Unfortunately, I do not trust any reporters or news/media as they are half backed people! They write some nonsense, without even knowing reality !!
No FOMO, happily staying away from market volatility!
Today again trade halted due to crash 7% !
trading halted 15 min after start.