Evil Knievil: Madness afoot
The sainted Willie Mullins has about 60 runners at Cheltenham this week. So let us be party poopers and bet against his Appreciate It in the opening race. The horse may well win but odds on is just too short.
Yesterday I caught up with a Vancouver-based contact, Levente Mady, to whom I had not spoken for some years. I am to blame for this since Levente knows what he is talking about. He draws my attention to the chart which indicates that the US long bond is tipping over. It is currently about 143 and may now head for 115. He thinks that this will be quite exciting.
He also drew my attention to a feature of the life of GameStop (NYSE:GME). There are call options written to expire each Friday. And currently this Friday’s 500’s are priced at around $5. This is true madness afoot given that the underlying equity is around $200.
Finally, Mrs Thatcher became concerned that the writing at 10 Downing street be tightened up. The cause was a letter from that address to the Duke of Rutland which opened “Dear Mr Rutland…..”. Most would think that an ill-mannered epistolary style.
In what way will it be exiting – may I ask as i know little about bonds.
I imagine the Gamestop calls are expensive because people don’t want to hold the stock in order to sell covered calls,and the alternative is to risk being short which has proven expensive recently.