Somehow when I look at how prices have been going---
--I'm a bit hard pressed to see that we've had any bottoms or tops at all since Dec. '13. For some reason or other everything just got perched and won't move. Maybe it's all waiting for a decisive trend in the '14 election, maybe stocks have decided to build a super strong'n'stable base to launch the next 3-year bull market, or maybe nobody knows nuttin'. My take is that while it's real easy to make money during a solid uptrend, and that lots of folks make money on shorts during a down trend, and some even can profit during back & forth volitility --I've never known how anyone can profit when nothing happens. Anyone?
OK, so at least we don't lose money here...
My take is that while it's real easy to make money during a solid uptrend, and that lots of folks make money on shorts during a down trend, and some even can profit during back & forth volitility --I've never known how anyone can profit when nothing happens. Anyone?
The options to hedge your bet/investment is called a "straddle."
No, I'm not going to explain the margins, dynamics, etc. right now. Maybe someone else can.
5.56mm