This morning on a noted business channel, a cute young thing was explaining what all the markets were abuzz about----it seems that even though the giant rescue plan had been implemented for the euro, and the markets had relaxed ...well...for a few minutes....they were still very excited and concerned about debt-----not so concerned that they wanted to pay higher taxes...and relax...not so concerned that they wanted to stop any foreign wars....and relax even further...not so concerned that they wanted to cut some spending....folks were just concerned---and furthermore, they were putting options, or rather complicated hedge options called straddles on the euro, oil and gold.
At that time in the tv presentation, it seems that the commentator got a little confused about what folks were taking puts or calls on, and well...the straddle proposed did not make much sense, but only one reporter noticed.
I would propose that no news reporter should be allowed to describe a complicated option strategy on the news unless they have completed a course of some sort in options. Only 1/2 of 1% of Americans are even financially qualified to be sold these instruments, and by the hype of the media, one would think every neighbor was daytrading. That is how I see it.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment