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View Diary: Eric Cantor's short bet reveals real GOP debt ceiling weakness (48 comments)

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  •  depends (1+ / 0-)
    Recommended by:
    chimpy

    oin strike and length. But in a full blown meltdown, those contacts might not even settle, and even if they did, the currency they're aid in might be in freefall. So it's a pretty dumb risk, putting all your other eggs in the air, from a purely investment risk/reward deal.

    •  If you know.... (2+ / 0-)
      Recommended by:
      chimpy, DarkSyde

      ...you're going to let a default happen, even for a few days and you were holding August $35 calls, you'd likely make some very nice coin. But then you'd have to have some inside knowledge that would happen....heh.

      •  If (0+ / 0-)

        were bond pices you'd want puts to bet on a crash. You mean interest rate calls right? Yes, you could absolutley make a nice short term gain on a big dip in bond prices that way. You might pyramid several times on a multi day move.

        Didn't politicians used to have to have their investments in ablind trusts? What happened to that very good idea?

        •  I think the fund he owns.... (2+ / 0-)
          Recommended by:
          DarkSyde, Odysseus

          .....is an inverse fund. Basically it goes up when treasuries fall and yields rise so he'd want to be in calls. I trade the TBT off and on...if this silliness goes on much longer I'm jumping back in.

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