LEH Warning

Just some thoughts on LEH, and their CEO, Mighty Dick Fuld. But first, a disclaimer.

LEH puts are prescribed to treat Dick Fuld Disorder (DFD).

If you take any medicines that have nitrates in them (like nitroglycerin for chest pain)—every day or even once in a while—you should NOT buy LEH.

Discuss your general health status with your doctor to ensure that you are healthy enough to engage in LEH trading. If you experience chest pain, nausea, or any other discomforts during market hours, seek immediate medical help.

Although sitting with a profit on long LEH position for more than 4 hours may occur rarely with all Dick Fuld treatments, to avoid long-term losses, it is important to seek immediate medical help. And buy long gamma, even at insane prices.

In rare instances, men going long LEH reported a sudden increase in profits and decrease or loss of vision. It is not possible to determine whether these events are related directly to your LEH position, or to other factors. If you experience sudden decrease or loss of vision, stop yourself out, and call a doctor right away.

Sudden decrease or loss of hearing has been rarely reported in people taking Dick Fuld inhibitors, including LEH puts. It is not possible to determine whether these events are related directly to Dick Fuld or to other factors. If you experience sudden decrease or loss of hearing, stop trading LEH and contact a doctor right away.

Remember to protect yourself and your partner from Dick Fuld.

The most common side effects of Dick Fuld Disorder are headache, facial flushing, upset stomach and loss of all your capital . Less commonly, bluish vision, blurred vision, or sensitivity to light may briefly occur.

OK, seriously, we have a major volatility explosion. I have no position, but the big mistake in something like this is always to just short those pumped puts. You may win at the end of the day, but that does not make it the "correct" trade. Option volatility explosions tend to resolve in actual stock volatility explosions. Occasionally you get a Bear situation, where the stock continues on to wallpaper status. But more often than not the stock just moves incredibly violently and resolves in the opposite direction.

Whatever way this goes, naked put shorting is the last position you want on. Calendar spread sales and/or backspreads where you get long extra contracts make more sense imho.