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Posted by Bill Luby

FT trader/investor for past 6 years. Previously worked for two decades as a business strategy consultant. Education includes a BA from Stanford and an MBA from Carnegie Mellon. More broadly: I'm a militant eclectic, but a pacifist of the heart. I'm non-judgmental, yet very discriminating.

Guest Columnist at The Striking Price for Barron’s: Calm Down and Exploit Others’ Anxieties

by Bill Luby on November 19, 2012

in Commodities, Technical Analysis

On Wednesday I had an opportunity to serve as a guest columnist for The Striking Price on behalf of Steven Sears at Barron’s for the eighth time, focusing my attention on some of the early findings from the VIX and More Fear Poll in Calm Down and Exploit Others’ Anxieties.

In some respects, the most recent Barron’s article is a companion piece to another Barron’s article I penned in May: Be Greedy While Others Are Fearful. This time around I delve into some of the emerging behavioral finance aspects of the survey results, specifically related to geographical and temporal proximity bias. I also discuss the merits of a SPY short straddle trade as well as long VIX puts as a means to take advantage of some market distortions due to that bias.

As far as the most recent Fear Poll goes, this week the race for the top spot looks as if it will go down to the wire and for the first time so far, there are more than two viable candidates for the top slot. [If you have not voted in the weekly poll yet, now is as good a time as any…]

Related posts:

A full list of my Barron’s contributions:

Disclosure(s): none

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