Friday, June 24, 2016
PANIC TIME: Smash Crash From All Time Highs
Which country is the most leveraged? The one whose stock market closed at the all time highs yesterday. Therefore, after the first hour when hedges are monetized, losses will very likely accelerate.
According to ZeroHedge, most puts are deep out of the money and expire TODAY. Meaning that gamblers will be MASSIVELY underhedged going into next week. And of course when volatility spikes out of reach, the only option left will be "SELL"...
Dumb Beta and ETFs in general are about to get pounded deja vu of August
Posted by Mac10 at 4:51 AM