The day and work week dawned quite early. Greenspan’s new book and his interview in FT and WSJ led to millions of raised eyebrows across the financial and political landscape.

Anyway, the financial markets are in a standby mode today. The crucial Fed meeting is tomorrow and the markets have seemed to price in a rate cut of atleast 25 bps already. The action will be very volatile stretching into the rest of the week, due to earnings from many brokers.

Northern Rock Bank, or ‘Northern Wreck’ or ‘Northern Crock’, or whatever it is called in Britain is being run over with a bulldozer. Never imagined I will see a classic bank-run in my living life. I had only read about in financial tomes, by Schumpeter, Friedman and the like. Well, this could foretell future financial troubles in the developed markets in the near term.

I am currently long on GS, AAPL, MRVL, CCJ, CFC and MOT. It is also a options expiry week and if current price action stays within a narrow 10% range, I should be able to cash in the GS and AAPL Sep Put-Spreads.

Implied volatility is highest for stocks in the last three years. It is a good time to write puts and buy calls (both out-of-the-money).