Black Monday

Time for some crash theory.
This is a timely issue of The 10th Man, because this month’s guest on The Monthly Dirtcast is Tony Saliba. One of the original Market Wizards, he was a fearsome option market maker on the floor of the CBOE going all the way back to… the seventies.
He also opened the S&P pit on the CBOE on Black Monday, the crash of 1987, which remains the biggest dislocation (and vol event) in the history of all financial markets. The Dow dropped over 22% in one day.
If you want to hear what it was like that day, check out this month’s episode.
Now, in preparation for writing this article, I wanted to brush up on the Crash of 1987, so I let my fingers do the walking:

This post was published at Mauldin Economics on August 3, 2017.