What a world we live in….the ETF-Cashinator is reporting something odd. The June expiry calls/puts look “normal” but July looks highly volatile and August looks “normal” and I’ve never seen this before so I don’t know what to make of it. In the past if options 60+ days out were out of whack then the subsequent months were out of whack. If the options 30 and 60 days out were normal then the 90 day options were normal but July options look like pure garbage yet June and August look stable. The only thing I can make of it are either:
1. The GM bankruptcy ripple effect will mestastasize in July.
2. The great Oil hope (big rally) will mestastasize in July.
3. The US Treasury market mayhem will mestastasize in July.
The scenarios may result in a big rally or a big fall for the markets which is why July looks so volatile, after July we’ll know if the market is headed for a tailspin and collapse in September or if we’re on our way to recovery and Dow 10,000 by end of December 2010.
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