Nasdaq Shorts Pay Off, but the Largesse May Not Last
If you believe the options market, the Nasdaq is going down in flames.
So if you own a portfolio tilted heavily toward the highflying index, now may be the best time for selling call options on the Nasdaq.
"People are just way, way too pessimistic about the Nasdaq," noted Jerry Wang, strategist with
Schaeffer Investment Research in Cincinnati.
TSC pointed out
Among other interesting option trades, State Street (STT) posted an outsized trade of 510 March 75 put options, 510 contracts traded vs. the open interest of 86. Shares of the stock were up 13/16 to 27 5/16, and the puts, generally purchased as bets that a stock will fall, were up in price, 5/16 ($31.25) to 2 9/16 ($256.25).
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