Options Traders Haven't Been This Worried About The Dow In 17 Years

Tyler Durden's picture

'Price' and 'risk' have decoupled in The Dow over the past 6 weeks or so, since China intervened in its FX markets...

 

While US equity prices have soared across the board, Dow 'VIX' is up dramatically while S&P 'VIX' is down (as one would historically expect)...

Smashing the cost of protection for The Dow to its highest level relative to the S&P in over 17 years...

 

What are Dow options traders telling us?

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DetectiveStern's picture

Does anyone really care anymore? Markets now remind me of the crooked dog tracks that the bookies wouldn't even take bets on and all that was left were shady fucks gambling between themselves.

Hkan's picture

Everyone and everything in emergency care.

assistedliving's picture

i've lost so much scratch w/ options

sunkeye's picture

Options as financial instruments should be abolished. And while I'm at it - all Futures too excepting those on agriculture products of course.

And the fact that I lost my ass trading the E-Mini has nothing to do w/ it.  Derivatives on non-tangible products are financial herpes just waiting to infect & inflame the risk they supposedly allay.

twittering as stocktradr's picture

learn to trader options at the BEST FREE financial educational site   tastytrade.com

never buy options.  sell them to the suckers. 

use defined risk trades.

trade liquidity. 

if you are not making money, you do not have a COMPLETE trading plan. 

east of eden's picture

ANd if you are 'writing options' then you better have a CB backing you up.

Tolomeo's picture

Good thing they’re worried! Otherwise we’d have negative VIX and the DOW in 000s daily increments...

I’m still not over what happened with GE last week... It was grotesque!!!

relativemoney's picture

emotional people tend to get it wrong.....

they might prove to be right and break the rule this time?

east of eden's picture

And whoever said the Chinese were 'stupid'. Seems to me like they are taking you on a one way ride to hell. 

S Spade's picture

no ones buyin the overpriced/rigged market, most of the volume is current owners (funds/institutions) bouncing shares back and forth to support and/or bump prices.