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Monday, June 4, 2012

Cara Community

Cara Community


Bill Cara's Week in Review #23, 2012

Posted: 03 Jun 2012 01:13 PM PDT

[4:33pm ET] Before I get into what you already know, which is that equity prices are continuing to get slammed and global capital is flooding into US and Japanese bonds and currency, let me tell you something that maybe you don't know.

Option traders are making a killing, one of their own making.

Once upon a time, a buyer of put options did so to protect a profit. The put was portfolio insurance. But today? Today, puts are weapons, designed to kill the rest of you.

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