Maybe it’s the end of the world, but I feel fine. On a popular business news channel (that would be CNBC) one of the personalities talked about how it would be a horrible weekend for traders, what with the Lehman (LEH) debacle and all. And, to be sure, I’ve heard other traders express the same gloom. To me the logical question is: why? The job of a trader is not to commentate or cheer for the good guys (or bad guys as it were). The job of a trader is to observe and subsequently act. We take notice of what is happening and figure out how to make money on what we see. If you think LEH is on its way to Hades in a handbasket I have one word for you: puts! If you think the government (ours or otherwise) will come to the rescue, you should welcome the opportunity to scoop up this giant for cheap.
The market offers trading opportunities daily. In fact, the existence of the options market specifically offers opportunity in perpetuity. Whatever the market or any individual stock is doing, there is a way to trade it. Bullish, bearish, high volatility stocks, sleepers, and even Lehman can all be traded with a little creativity.
So if this 158-year-old fixture in our financial landscape falls out of bed Monday morning I won’t shed a tear. I won’t have time. I’ll be too busy trading it.
DanPassarelli
Market Taker Mentoring
markettaker.com
