{"id":2204,"date":"2010-08-20T11:21:11","date_gmt":"2010-08-20T18:21:11","guid":{"rendered":"tag:google.com,2005:reader\/item\/0803f16704d6d37b"},"modified":"2010-08-20T13:12:09","modified_gmt":"2010-08-20T20:12:09","slug":"the-markets-economic-data-and-my-black-swan-approach-scala-volpe-capital","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2010\/08\/the-markets-economic-data-and-my-black-swan-approach-scala-volpe-capital\/","title":{"rendered":"The Markets, Economic Data, and My Black Swan Approach &#8211; Scala Volpe Capital"},"content":{"rendered":"<p>At this point I think it would be helpful to illuminate what I\u2019ve been doing both in reaction to the economic data and to be proactive to what I think is still to come.As you may have read already on my Portfolio page, I do employ black swan protection protocols rather consistently month to month.What this means is, each month I purchase the following months\u2019 put options on the SPY (the underlying investment symbol for the S&amp;P500 stock index).These put options, which reflect a bearish outlook on the underlying investment, are bought \u201cout of the money,\u201d meaning the anticipated price (or strike price) that I\u2019m purchasing is below the actual price of SPY as it stands today.So for example, SPY closed around 107 today, and my September puts have a strike price of 100.If the SPY were to make a sharp move downward below 100 before September 18 (the day my options expire), I would profit handsomely.If the puts expire out of the money I\u2019ll lose my entire initial investment sum.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At this point I think it would be helpful to illuminate what I\u2019ve been doing both in reaction to the economic data and to be proactive to what I think is still to come.\u00a0 As you may have read already on my Portfolio page, I do employ black swan prote&#8230;<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[165,4],"tags":[300,299,301,298],"class_list":["post-2204","post","type-post","status-publish","format-standard","hentry","category-investing","category-john","tag-black-swan-protocol","tag-christopher-anastasio","tag-options","tag-scala-volpe"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/2204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/comments?post=2204"}],"version-history":[{"count":3,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/2204\/revisions"}],"predecessor-version":[{"id":2206,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/2204\/revisions\/2206"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=2204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=2204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=2204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}