Re:U.S. Identifies First Coronavirus Case Without Outbreak Ties
by usaar333 on Thursday February 27, 2020 @02:06AM
(#22431293)
Your timing was good since you bought when the market may have been mispricing volatility. Assuming these are puts, a lot if your gain is from the volatility shoot up.
At this point, the market has corrected volatility pricing dramatically (vix is doubled). Odds are over 50% we'll see sp500 drop below 2900 in next month (Black Scholes). But that doesn't mean a short is profitable - I recall 2008 but also the false recession of late 2018 - few people could have accurately predicted both results.
At this point, the market has corrected volatility pricing dramatically (vix is doubled). Odds are over 50% we'll see sp500 drop below 2900 in next month (Black Scholes). But that doesn't mean a short is profitable - I recall 2008 but also the false recession of late 2018 - few people could have accurately predicted both results.