Vols coming back in today

As predicted, the market seems to be quieting down a little this morning. With the Dow up 90+ points, it looks like folks are willing to wait and see before panicking. Names with subprime exposure are still high, but for now the market is willing to isolate those risks.

So it seems we're not the only ones feeling the pain from all of the insider trading that's been going on recently. Everyone I know agrees that scummy option paper has never been so prevalent as now. And it's not just the old standby of scooping up the front-month ahead of an announcement. The tricky tricksters have even caught onto the trick of selling longer term options ahead of a take-out with little or no premium so that the option's volatility value goes to zero. This type of deal is, in theory, easier to hide from market surveillance. Just as scummy, nonetheless. I can't understand why anyone would want to risk going to jail just to earn a few extra bucks. It's not worth it, people. The paper trail is there forever and you will always be found out.