Exact(14)
Individual stocks with long-term records can also be vetted for downside risk.
"It's somewhat subjective, but I think the run-up of stocks that we saw before Labor Day has set the stage for downside surprises".
It may have been that the Instagram founders did not want to exchange a share of the upside for downside protection, preferring instead to make what is so far a losing bet on Facebook stock.
More volume was observed on the put side as investors looked for downside protection.
Apparently, this trader is more bullish on the stock and does not feel the need for downside protection through the break-even point at $10.55.
I translate all this into a 10% market risk for "downside surprises" in earnings because of the extended shortfall in GDP.
Similar(46)
Unfortunately, today's political debate doesn't seem to have room for downsides.
Others are concerned that despite the relatively small average reduction and potential for downsides of screening, CRC screening is relatively beneficial compared with other services and thus should be endorsed.
There's not a whole lot of downside for stocks.
Remember you are playing for the upside, not managing for the downside.
"For the downside risk you are fairly compensated for the potential upside return," he says.
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