Posted on 09/25/2008 7:42:45 PM PDT by what's up
Part of the system problem. It should come back when the system is restored.
For every option I buy someone has to sell one. When I buy a bunch of puts, the put/call ratio does what? When the put / call ratio is high, the stock does what? Why does a high volume of open puts affect the price of the stock?
That a bunch of people saw that things might go bad soon for these companies, so they started to short, and another bunch of people jumped on the bandwagon. If the companies weren't in bad shape, then all those people would have lost their money.
You don't need any conspiracy to explain this. If AIG had been sitting on a ton of cash or, at least good investments with good cash flow, they wouldn't be in this fix. Same with the rest of them. Screw'em
This bailout thing is getting stinkier the more I hear about it.
no duh!
It probably changes.
When the put / call ratio is high, the stock does what?
That depends.
Why does a high volume of open puts affect the price of the stock?
Why do you think it does?
If you buy a huge number of puts, the specialist selling them to you will hedge his sale by shorting the underlying stock. Are you claiming that someone who sells you a CDS will borrow and sell the debt? I thought the complaint about CDS was they were unhedged, naked gambles?
Where did you go? You almost sounded like you knew what you were talking about. LOL!
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