(Bloomberg) — Thursday’s Nasdaq nosedive dispensed painful lessons in how options-market leverage can blow up in an investor’s face.Losses in benchmark indexes were brutal enough, getting to 6% in the Nasdaq 100, or about $730 billion erased. In single-stock equity contracts they were downright existential, with some instruments wiped out in the space of a few hours. Volumes in puts and especially calls has been exploding in recent weeks, much of it in the tiny lot sizes denoting individual traders.While it’s never hard to pick out staggering losses in options when markets tumble, and plenty of examples exist of well-timed …read more
Source:: Yahoo Finance
