Thursday, May 29, 2014

The Ultimate Short Volatility Trade

My mother-in-law has a magic nose.  She diagnosed a gas leak in our main feed into the house in 2009 that the "electronic nose" the PSE&G guy carries took an hour to find.  So, when she arrived tonight and announced she smelled gas, I called the emergency hotline.

Driver arrives.  Stands in the street a long time on the opposite side of the truck. What's he doing? I can't see.  Several minutes pass.  I walk down to check.

"Hey man, I'll be right there.  Someone dumped a whole lotta pennies on the ground here.  I gotta pick 'em up!"

I have now witnessed the worst trade in the history of financial decision making.

Thank-you PSE&G technician!