Options

A number of new (and old)  stock picking services are brought to our attention most every week.  We coined the term “wreck-o-mendations” because of the severe portfolio damage they can do.

Click here for more of a discussion …

In any event, we are following a number of put selling trade recommendations with Dec 2011 expirations started last week. EVERY one is already in-the-money and we aren’t even in December yet!

As a reminder, selling naked puts is effectively being long the market and therefore comes with substantial risk especially in a down market that many believe has crash potential.

 

China

HSBC reports initial “flash” reading of its China manufacturing survey fell well below forecast to a reading of 48.0 for November (contractionary).  October was a mildly expansionary 51.0 reading.