Ride the bull higher-but limit your exposure
New Delhi, May 16 -- Bubbles are only dangerous if improperly managed.
Stocks, indexes, and call-option implied volatility are advancing to ever-higher highs, despite innumerable risks that are almost too trite to mention. And yes, some are even calling it a bubble.
Once more, we are at the tumultuous intersection of greed and hope.
We recently suggested hedging in anticipation of a stock decline, but some investors will prefer to harness the wild-eyed enthusiasm of investor sentiment.
We know of some very smart Wall Street pros who recently took profits and regret selling as stocks move higher. Anyone wondering about risk-defined ways to add exposure to a hot stock and hotter options market should consider so-called bull spreads on t...
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