This page has been archived and commenting is disabled.

Updated Basis Trade Thoughts

Tyler Durden's picture
Submitted by Tyler Durden on 04/15/2009 03:06 -0400



 

Early Zero Hedge readers are aware that I have often discussed the benefits of the basis trade in the context of an improvement in overall market liquidity, especially at the pronounced mid/late-January negative basis initiation. I would caution readers who have established this position to be very careful in the coming days with any established bases, and prudent readers may do well to trim exposure here, and take the 200bps average pick over the past 3 months. As DE Shaw had put it poetically "selling puts on market liquidity" via basis participation, given recent Zero Hedge disclosures, has very unappealing risk/return parameters. There is likely easier money to be made elsewhere.

 
»

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 04/15/2009 - 03:27 | 2487 Anonymous (not verified)
Anonymous's picture

Oh brother!

Hey I bought SDS on March 9th on the close @ 115!

OMG! Should I sell it here!!? What's going to happen in the future?

Wed, 04/15/2009 - 13:53 | 2488 Brian (not verified)
Brian's picture

Wow, that was some awesome crazy. Thanks for that!

Wed, 04/15/2009 - 15:22 | 2489 Anonymous (not verified)
Anonymous's picture

Did GS also placed the stain on the blue dress as a diversion to push through more deregulation?

Do NOT follow this link or you will be banned from the site!