Wow, what a turn of events. BSC shareholders get the big banana, all time high of 160 to 57 Thursday to 30 on Friday to 2! Yikes!
As of this writing SP futures, Japanese bonds, gold are all higher. I can't understand how the BSC take under can be good news for stocks, bonds and gold, so I expect this to sort itself this week. I dodged a bullet, because I saw those huge premiums on BSC options on Friday and was so tempted. Many times in my past, chasing those big premiums as an option writer has led to disaster.
My instinct is to sit out this dance and wait for more clarity. To quote Clint Eastwood, "a man has to know his limitations." Fast moving volatile markets are a dangerous place for relatively slow moving position traders such as myself. The baseball analogy would be to wait for my pitch instead of swinging wildly at the nasty slider being thrown at the moment. I may look to take on some positions, but they will be small with a decent margin of error.
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