time to buy?
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dang whats going on with the futures?
- Thread starter jedwards
- Start date
time to buy?
I am more scared of BP oil spill then north korea and israel war.
I think the selling comes from partly real selling/shorting and hedging.
Hedging because yesterday somebody made a huge bet that by june expiration we would be at EEM 30, that would be S&P 950? The bet happened at 3:30 pm and costed over 10 million! WHo would do a gamble like that?
EEM - iShares MSCI Emerging Markets Index ETF â An enormous bearish put butterfly spread comprised of 240,000 put options cast a gloomy shadow over the emerging markets fund late in afternoon trading. Shares of the EEM, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the MSCI Emerging Markets Index â an index created to measure equity market performance in the global emerging markets, are down 0.35% at $37.21 as of 3:30 pm (ET). The massive bearish transaction on the fund suggests one big player is bracing for a potential 19% pullback in the price of the underlying shares by June expiration. The butterfly spread spans the June $25/$30/$35 strikes, with 60,000 puts picked up at the June $25 strike for a premium of $0.11 each [wing 1] and another 60,000 puts purchased at the higher June $35 strike for a premium of $0.88 apiece [wing 2]. The body of the butterfly involved the sale of 120,000 puts at the central June $30 strike for a premium of $0.27 a-pop. The net cost of the spread amounts to $0.45 per contract. The EEMâs shares must slip beneath the upper breakeven price of $34.55 before the investor starts to make money ahead of June expiration. Maximum available profits of $4.55 per contract pad the investorâs wallet if shares of the underlying fund fall 19.35% from the current price to settle at $30.00 at expiration. Shares of the EEM last traded below $34.55 back on August 19, 2009, and touched a 52-week low of $30.12 back on June 23, 2009. The investor responsible for the giant transaction only ever risks losing $0.45 per contract, but stands ready to amass more than 10 times that amount â $4.55 per contract â if shares nose-dive down to $30.00 ahead of expiration day next month.
Market makers probably had to hedge by going short.
I think the selling comes from partly real selling/shorting and hedging.
Hedging because yesterday somebody made a huge bet that by june expiration we would be at EEM 30, that would be S&P 950? The bet happened at 3:30 pm and costed over 10 million! WHo would do a gamble like that?
EEM - iShares MSCI Emerging Markets Index ETF â An enormous bearish put butterfly spread comprised of 240,000 put options cast a gloomy shadow over the emerging markets fund late in afternoon trading. Shares of the EEM, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the MSCI Emerging Markets Index â an index created to measure equity market performance in the global emerging markets, are down 0.35% at $37.21 as of 3:30 pm (ET). The massive bearish transaction on the fund suggests one big player is bracing for a potential 19% pullback in the price of the underlying shares by June expiration. The butterfly spread spans the June $25/$30/$35 strikes, with 60,000 puts picked up at the June $25 strike for a premium of $0.11 each [wing 1] and another 60,000 puts purchased at the higher June $35 strike for a premium of $0.88 apiece [wing 2]. The body of the butterfly involved the sale of 120,000 puts at the central June $30 strike for a premium of $0.27 a-pop. The net cost of the spread amounts to $0.45 per contract. The EEMâs shares must slip beneath the upper breakeven price of $34.55 before the investor starts to make money ahead of June expiration. Maximum available profits of $4.55 per contract pad the investorâs wallet if shares of the underlying fund fall 19.35% from the current price to settle at $30.00 at expiration. Shares of the EEM last traded below $34.55 back on August 19, 2009, and touched a 52-week low of $30.12 back on June 23, 2009. The investor responsible for the giant transaction only ever risks losing $0.45 per contract, but stands ready to amass more than 10 times that amount â $4.55 per contract â if shares nose-dive down to $30.00 ahead of expiration day next month.
Market makers probably had to hedge by going short.
Quote from Robert Weinstein:
I wonder what the dead sailors of the S Korean ship that sunk recently think about the cease fire........
but there is a de facto end of the war. Kinda like with the native American tribes that are still technically at war with the USA
I have never been to N Korea but I have thought about it. Not hard to get there. Just go to China and down you go. My thought was that it may be too much like the hotel California. You can check out but you can never leave. Just like many Japanese and others have found out.....
All BS aside, how poor do you have to be when you risk your life to cross over to china in hopes of marrying some dirt ass poor Chinese farmer so you can live the "good life"???
actually there are 2 million chinese citizens of ethnic korean descent in North East China, they largely control the rice trade in Northern China and are considered one of the wealthiest ethnic groups.
Quote from jedwards:
Down pretty heavy afterhours, -120 on the YM... but I don't remember reading anything out of the ordinary. Any clues on what's going on? Is it just reacting to the euro being at 1.23?
On another note, is anyone else predicting an overnight reversal due to the European markets, leading to a green open tomorrow morning?
Is lescor going to make 100k again today
Quote from themarket:
Uh...well...just to update you. Nothing personal, mind you. We are already at war with North Korea. The Korean War never ended. We are merely enjoying a cease fire. Granted its the longest cease fire in history, but a cease fire nonetheless. The war never ended.
we would never win in Korea anyway, the Chinese would not want to see a US puppet state next to their borders. There is no way the US can take down the Chinese army unless you want to throw the whole world into hell.
Quote from MohdSalleh:
actually there are 2 million chinese citizens of ethnic korean descent in North East China, they largely control the rice trade in Northern China and are considered one of the wealthiest ethnic groups.
Well there could be. but you do know you used the number 2 million right? That's not much more than a medium sized apartment building over there....lol (just kidding of course but it illustrates the point). China I believe has something like 1.4-1.5 billion (give or take about 1.3 officially) so if we are using an area of 15% of the land area 2 million is not that high. Especially since the area is full of mineral wealth
I have been to a lot of provinces and I have seen a lot of countryside but I have yet to see a farmer that was making any type of wealth. Most that I saw would be happy to move up to a larger than one room house and have water, electric.
But of course I can only comment on what I saw and was told. But I would not think it unusual that those that do control (usually through state-private partnerships) are making a very good living.
Quote from themarket:
Uh...well...just to update you. Nothing personal, mind you. We are already at war with North Korea. The Korean War never ended. We are merely enjoying a cease fire. Granted its the longest cease fire in history, but a cease fire nonetheless. The war never ended.
Nope.
The Korean war was a conflict between Chinese/Korean forces and UN forces and it ended the same way that WWI ended, by signing an armistice.
Eisenhower got the North Koreans, China and the UN to sign an armistice.
Although South Korea did not sign the armistice it's kind of hard to have a one-sided, undeclared war no matter how hostile you are to the other side.
Two things one can do .....buy the down open. Look at any stocks that have a huge indication to open lower...put in limit to buy at what price you think you can get filled. This is a short term play on a rally in the first hour or so, not a rally to green but a releif pop, .
Second, you can sit on your hands...wait for a pop...and short into any rally for a expected sell off.....market orders into the rally on the short end...you will take heat. If the market sells and does not break low of the day on the sell off, cover fast. If the market looks to have serious buy orders coming in cover and go long....
plenty of ways actually to trade this down open...
Second, you can sit on your hands...wait for a pop...and short into any rally for a expected sell off.....market orders into the rally on the short end...you will take heat. If the market sells and does not break low of the day on the sell off, cover fast. If the market looks to have serious buy orders coming in cover and go long....
plenty of ways actually to trade this down open...