The Greek fiasco should position weekly option traders to look for Bearish Trades to make money short term.
Is it true that Greece, in order to borrow money, would borrow it at 108%? That is what Greece is willing to pay out in a year to borrow money today? No one could sustain a promise this ridiculous. This is unrealistic and when the powers that be start setting bond prices at rates like this, when we all know that no payout will ever take place like this…we encourage panic in the markets. It is all unreal. If we are not careful, we can see 2008 panic all over again. We are mirroring the same path as we did back then, but our financial stocks are performing at an even worse rate than they did back then.
Speculation on Greece defaulting on the agreement they had with the European Union in July is what has made the markets unsteady. A lot of this mess is the powers that be attempting to protect their own interests in their own financial institutions. Greece is being bailed out at a debt rate of 108%. Does this really look credible? “European Banks should not raise more capital!” This is the cry of Josef Ackerman chief executive of the Deutchse Bank. This, supposedly, would be too risky to undermine the credibility of the bailout packages. Well well—at 108%, do we call this credible?
We are in a time when we have a whole lot of sovereign countries borrowing more than they can pay back and promising citizens a whole bunch more than they can deliver. So this is the reality of where we are presently and we as weekly option investors must learn to work with what the world gives us weekly.
John Mylant is CEO of EmpoweredInvestingNow.com. He is in high demand as an Investment Trainer. Coaching traders all over the world how to grow their portfolio, he uses Option Strategies that are safe, conservative, and allows for quick steady growth with limited liability. Interested in successfully growing your portfolio using options—safely, efficiently, and quickly? Click here to learn more.
