Dollars and Jens
Friday, January 12, 2007
Nasdaq puts
I've done some of this. I've held some of these options for a while, and have bought some more since I started reading "Fooled by Randomness".

I don't necessarily think the market is substantially overvalued (Morningstar thinks QQQQ is worth 42, and it's priced at 45, and they keep better track than I do), especially if the economy keeps growing at a steady rate without inflation. Forever. But I'd rather not have all of my eggs in that "forever" basket, and the volatility index seems to suggest that the market is willing to bet on forever. So excuse me while I buy some cheap insurance.

Powered by Blogger