Quote:
Originally Posted by ar81  Do not worry. If you think stocks are a problem, wait for the bubble of the options. Sooner or later. This is several times bigger than US economy. |
What options are you talking about? Stock options? Commodity options? Some other sort of more exotic derivative?
I'm VERY suspicious of your post simply because I don't believe the open interest in any options market (or any other derivative market, for that matter) even begins to match the size of the US economy. I'm also suspicious because options don't tend to have bubbles beyond whatever occurs in the underlying. The combination of fast expiration and historical volatility data points tends to keep them priced more or less in line.
For the record, I don't think "stocks are a problem" either. I think being long stocks might be a bit of a problem in the medium term, which is why I am currently short.