Picturing Panic

TGIF.
Today marked day two of stock annihilation in America. After yesterday’s bloodbath, many fearful investors were desperate to sell their stakes before they lost more value. This turmoil sent the entire stock market into some sort of panic mode, where the majority of high-flyers continued losing up to 10% of their worth. If you’re interested in finding out just how bad things got in the midst of the craziness, here are some charts taken from yahoo finance showing change in value of puts for SPY, AAPL, and NFLX.
SPY-PUTS
AAPL-PUTS
NFLX-PUTS
Woah.
Here’s some inspiring motivation: Some guy out there got a 2,200 percent return on an investment in a single day.
Luckily though, the opportunities are not gone yet. In fact, some would say that the best chances to make money have just arrived. Like I stated in my previous post, the market should see a rebound sometime next week as the confident economists will be hard at work this weekend convincing the masses that all is well and that the markets can’t continue crashing. If such a rebound doesn’t occur, then things could get really bad.
Oh well, at least calls are cheap.
SPY-CALLS

Crash Clues–The Implications of Today’s Sudden Stock Carnage

Here are some numbers to take into account:

TWTR down 1.61 (5.83%) to a below-IPO 26


NFLX down 9.57 (7.84%) 


ANFI down 1.77 (38.06%) 


MCUR down 9.07 (75.27%)


S&P 500 down 43.88 (2.11%)


DJI down 358.04 (2.06%)


TSLA down 13.07 (5.12%)


TWC down 3.86 (2.02%)

It seems as if many investors today collectively realized that most stocks are overvalued and have been inflated to the point where they are no longer sustainable. Although a large portion of the market suffered noticeably large losses, what we just witnessed was not a full-fledged crash, but is a hinting to what is awaiting us in the future. For the first time in a while, the world got to observe what consequences come as the result of an unjustified bull-run that has brought the majority of stocks to record highs and gave tiny burger chains billion dollar valuations. However, things could have been much worse. Sadly, a day is going to come when things do get much worse. And by the looks of it, this infamous “doomsday” that has been fantasized about so much by conspiracy theorists is not very far away. At this moment, the entire stock market (and the entire world, for that matter) is teetering on the brink of an unavoidable cliff, supported only by those who believe that  stocks are going to continue to grow and meet Wall Street’s ridiculous expectations.

What this signifies:

One day, things are going to catch up with us and we will all have to face reality. My prediction is that, like always, stocks are going to make one final hail-mary leap before crashing to the ground. Just be alert for sudden, unexplained price increases.

Stock Market Crash - Stevan Noronha