Q3 will fly, Q2 will be mild, page-10

For every action there is a reaction......huge gamble....but who is right?.....only time will tell.

https://www.cnbc.com/2019/01/15/ano...n-sp-500-causes-a-stir-on-options-market.html

An anonymous trader caused a stir in the U.S. equity options market on Monday with a massive bet that recalled Warren Buffett’s famous wager on global stocks more than a decade ago.

The trader sold 19,000 put options on the S&P 500 Indexobligating him or her to buy the market benchmark at 2,100 on Dec. 18, 2020, data from New York-based options analytics firm Trade Alert showed.


As long as the index doesn’t drop more than 22 percent from its current level of 2,582 by that date, the bet will earn the trader roughly $175 million in premiums.

However.....

Some market participants guessed the trader was likely hedging against another position rather than betting outright that stocks will rise.

“The natural sellers of long-term downside puts are structured products desks at banks, who are hedging exposure they get from retail clients who buy structured notes that have embedded short put options,” Benn Eifert, chief investment officer at QVR Advisors in San Francisco, said on Twitter.