With the causes of last summer's market volatility still relevant, the low level of the VIX,...

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chanthirani Comments (445)
 
I'd agree with the second viewpoint i.e. "another is that they're sitting on the sidelines and so don't need protection". Volumes in the stock market this August have been very low, much lower than previous Augusts.
19 Aug 2012, 09:21 AM Reply Like

ssl23 Comments (115)
 
It's the Draghi put....

Spain has no choice but to ask for assistance...it's a matter of when, not if...

If Spain does not ask for bond buying, the market will take Spainish 2 year yields up again and Spain will be forced to ask for help.
They are boxed in.....
So the Armageddon scenario is off the table....
19 Aug 2012, 09:34 AM Reply Like

kmi Comments (3844)
 
Or perhaps, no one sees a potential outcome that could possibly necessitate being hedged in the current environment.
19 Aug 2012, 10:45 AM Reply Like

Joe Razorback Comments (271)
 
Just wait until Bernanke drops the bomb that there will be no more QE3 at the Jackson Hole Speech. That will pump up some volatility. I'm definitely buying some VXX to protect myself. WAY too cheap not to. We have to pull back some even if we go higher over the next 4-6 weeks....
19 Aug 2012, 02:52 PM Reply Like

smurf77 Comments (9)
 
Well, the obvious trade is not usually the best one!
20 Aug 2012, 01:36 AM Reply Like

DeepValueLover Comments (5084)
 
Simple...

For cheap and easy 30% downside protection simply:

1. Buy the DEC12 $100 strike SPY put for 30¢.

2. Finance the trade by selling two DEC12 $90 strike SPY puts for 15¢ each.

3. Sleep well at night as the election/ Iran War/ Fiscal Cliff/ Heart of Hurricane Season approaches.
20 Aug 2012, 12:58 AM Reply Like