Expensive Put Options

Did you know that the DOW intra-day high on May 17, 2001 was 11,328? Yesterday, almost than ten years later, the DOW closed at 11,637. 10 years...

So, when your financial planner tells you you should be in stocks as a long term investment, remember, he means forever, and forever is a very long time. Buy and hold is truly dead.

That aside, the reason for my post today is to tell you I believe we are very close (1-5mos) away from a major sell-off. Why? Because every put option (short bet) I am trying to buy with expiration dates between March 2011 and June 2011 is very, very expensive. This tells me people with big money, investment banks and institutional traders, are beginning to buy protection in a big way or are outright shorting the market.

Be careful!