Melancholy Korean

Why Gold Is the New Currency

So, the trade is to buy gold as it keeps getting cheaper?? Short the dollar as it starts to get stronger? uh, ok.

Historic Financial Collapse Underway?

If you want to play the bankruptcy game and buy puts, let's see, the 10 delta put in FNM for September expiry, the 5 strike, looks like it's trading for .80 cents, which works out to an implied vol of 230. It's low delta, not much gamma to trade, even if the stock's realized vol the last few days has been up at crazy levels. It's more of a binary option on the equity going to zero, ok, I get that, so maybe you don't care the break-even is 4.20, but do you really want to gamble on the timing like this?

The only bankruptcy that buying puts outright is good for is the personal kind. If you want to gamble, go to Vegas. It's a hell of a lot more fun.