What are traders, who usually keep options to expiration, doing as the possibility of war anda large price move exists before February options expiration? I have not been used all my margin this month and thinking of going away next month.
During the Persian Gulf war the market made a bottom when the U.S. began bombing Iraq. Naturally, this time around money will start pouring into stocks well in advance of the war (like now). I am waiting for the Dow to reach 9000, SP500 - 950, and VIX - 25 to start buying March puts.
Dis, so you think the war will be longer than two days to a week and the market takes it negatively? There is a headline on drudgereport saying the build up will be complete by mid feb which is a week before expiry on the 21st feb. looking like feb expiration may be volatile.
IMHO: Bush administration has been considering attacking Iraq for few months. The possibility of a war has been discounted by the market already.