Economist El-Erian says derivatives show retail traders may be drowned by a large correction in stocks | Markets Insider

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Economist El-Erian says derivatives show retail traders may be drowned by a large correction in stocks

with the Financial Times retail investors should consider the outlook of the options market to prepare for a stock market correction following explosive gains over the last five months.

He added:"After all, despite the vocal concerns over valuations having split away from underlying corporate and economic fundamentals, few fund managers have been willing to challenge the market by placing outright shorts."in the last 15 years, according to data from Goldman Sachs. In contrast to equity longs, call options gives the buyer the right to buy the underlying asset at a predetermined price on a certain date. Buying calls suggests an investor believes an asset has further room to rally.US Investing Championship hopeful Matthew Caruso landed a 382% return in the first half of 2020. He shares the unique twist he's putting on a classic trading strategy — and 3 stocks he's holding right now.

 

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Indices can't even have a DOWN DAY let alone a down week.

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