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Volatility Trading Digest: Deepwater Horizon

Although European sovereign debt still occupies a large portion of the financial news space there is little doubt that the crude oil bellowing up from the bottom of the Gulf of Mexico is about to take top billing on the list of economic concerns. Like the inverse of decaying option time premium, every day the rupture spews more crude oil, the risk of permanent supply disruption due to political exasperation increases exponentially.

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