Frenzied Traders Send Option Volumes To All Time High; Go All-In Tesla, Tech Calls

[RedDuke]

Sure, declining rates and QE are repricing the overall yield on investments across the board which makes the earnings yield also go lower (thus higher stock prices).

This time is different in what ? That we won't see a decline in stock prices ? That's not what i hear. All i hear is that everyone is waiting for a crash so they can take their saved money from under the mattresses and go out to buy real estate and stocks...so they wait and wait and wait...

Exactly this, that rules have changed and the only way is way up, similar to RE prices can never significantly decrease.

Few canaries in coal mine:
- TESLA surge
- Microsoft accounts for 28% of the S&P’s gains this year, Apple is 15%, Amazon 13%, and Google 11%.
- Buffet significantly under performing S&P

The thing about market rise is that it is fueled by debt and buyback and not value.

Does not mean it can not go even higher. But risks are too high to go all in.