Trader Sold 19,000 SPX 2100 Puts

[sle]

Why did you put SOLD in the title? Obviously somebody BOUGHT them too. Maybe that is more news worthy than selling far OTM insurance. And if it is a hedge, then it is just business as usual.

Because the color is that someone (real money, by the looks of it) sold puts in size. The fact that a dealer bought them is far less interesting.

 

[Pekelo]

The fact that a dealer bought them is far less interesting.

How can you tell? I guess you saw the large order sitting there before getting filled?

 

[ajacobson]

Floor brokers - where they still exist - provide "live" shows. So I broker will call and say XYZ is the crowd looking to see 19,000 to open. For this, you often give them a higher commission on your next trade with him.
As long as the order has been exposed or shopped and there is no material non-public - the show is OK.

 

[TommyR]

The delta on this annoys me more than the vol. When i saw this i thought that's not fair is it with vol at 50 even if it went down 20% you'd still win. Thats like playing the lottery where you know you will win, but it was fair that's the problem. i just did nothing

 

[TommyR]

hopefully they sold way too much cash against it and have forgotten so are actually only flat.

 

[maxinger]

Some traders Sold 19,000 SPX 2100 Puts and also
Some traders bought 19,000 SPX 2100 Puts


Look at it this way.
There were sellers and there were buyers.
Who is smarter?
or rather who is more foolish?

 

[sle]

Look at it this way.
There were sellers and there were buyers.
Who is smarter?
or rather who is more foolish?

This has already been answered before (see quote below). The outright trade is indicative of a strong directional conviction. The delta-hedged trade on the other side simply shows that a market maker took the trade down at the implied level that fits his book. It does not even mean that they think this vol is going to realize at that level, FWIW.

Because the color is that someone (real money, by the looks of it) sold puts in size. The fact that a dealer bought them is far less interesting.

 

[murray t turtle]

Never thought about it like that! Do you have any evidence as to why this might be the case? Setting everyone up for a soft landing?

%%
You mean beside the Fed being a bank regulator, a limiter of WFC size bank;
+ besides most, most pension plans/roth retirement , being long the stock market/ mutual funds/Etfs stocks, dividend stocks??

While i usually agree with ''dont fight the fed''; they did a surpise rate cut in the bear of 2008, market upticked aboUt 20 days, then the bear trend resumed down. S o like DOW Theory notes ,no fed,no bank, no player, no gov is bigger than the market.

 

[Stockolio]

Since 2009 it's completely different... Bank of Japan was the only active Central Bank in the markets around that time, since 09 there's dozens of Central Banks active in markets with the green light to sustain at all cost, off the books if needed. Can there be sudden stock crashes ? Of course, UK crashing out of Europe, Australia's Lehman or China Minsky are events that can cause a sudden Crash near term. Pension funds are big into equities now, adding the need for CB's to maintain Markets. Big question is when the Japanese stop buying all the CLO's... I am all in on long PUTs, but it's clear a hard landing in Markets will only come from a serious geo political event and not a earnings recession/economy deterioration

 

[murray t turtle]

Some traders Sold 19,000 SPX 2100 Puts and also
Some traders bought 19,000 SPX 2100 Puts


Look at it this way.
There were sellers and there were buyers.
Who is smarter?
or rather who is more foolish?

%%
That depends;
so many corrections are 19% or 20% or less LOL. Dividend collectors [cash]can do all right also.Most people that buy insurance dont really want to collect. But seldom do you see an insurance co go broke; State Farm did get out of FLA, too little property premium profit.