Soaring volatility on the Nikkei isn't stopping investors from scooping up options "with...

Soaring volatility on the Nikkei isn't stopping investors from scooping up options "with something approaching glee," according to SIG's derivatives team (for the uninitiated, higher vols mean higher options prices). Most of the buying in the Japan ETF space is in the form of calls as dip buyers do what they've become accustomed to doing. Two popular ones, EWJ and DXJ are off nearly 10% since Wed. afternoon.

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Comments (2)
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    Sunday night Nikkei futures, coupled with USDJPY and other pairs.
    24 May 2013, 02:29 PM Reply Like
  • wh3928
    , contributor
    Comments (11) | Send Message
    Excessive institutional investors speculation over Japan QE excessive liquidity flooded the financial markets resulted extremely prices overshooting 70 % gain, even more than monetary liquidity gain of 50 % , as m2 increased from 2.2 % to 3.3 % in April., despite 1 Q GDP soared to 3.5%, household spending up 5.2 %, export up 3.2 %, however, business spending drop 0.9 %, country still in defaltion.
    The Nikkei index soared 70 % to 15800, ignoring all global economic weaknesss, including EURO recession, China 1Q 7.7 % GDP slowdown and monetary tightening from 16 to 13 % for housing bubble contraol and recetn US manufacturing ISM plunged to 51.6.
    Finally , mini buble burst , plunged 7.5 % reacting to US Fed possible scale down of QE in summer and China May PMI plunged into 49.6 contractionall will drag Japan 2Q GDP, April trade deficit soared 70 % to 866 billion due to soaring import prices casued by Yen depreciation.will drag Yen into further weakness and cutting into 2Q GDP .
    Nikkei is currently consolidating in 13900- 15,000 , until further real economic improvement, will be draged by Dow Jones correction due to Fed any QE exit expectation
    24 May 2013, 09:04 PM Reply Like
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