Wednesday, January 1, 2014

Heavy 'Put' Indicates Major Plunge In DJIA Next Week

While we learn from Tyler Durden that Bonds Close 2013 At 30-Month High Yields, we learn from optionMonster that "an unusual and strongly bearish position is apparently looking for the S&P 500 to plummet by the end of next week." The internet is now discussing why such a large 'put' would be placed upon the Dow Jones to plummet by the end of next week, bringing to mind other 'put options' placed with insider knowledge that a stock was about ready to collapse. The interesting new video below from Neo Hesus shares how a satanic cult came to run the world via the banks in which historical revelations come to light.


An unusual and strongly bearish position is apparently looking for the S&P 500 to plummet by the end of next week.


optionMONSTER's Depth Charge system shows that a trader bought 9,800 January Weekly 1475 puts that expire in 10 days, for the ask price of $0.20. These are new positions, as the previous open interest at that strike was just 263 contracts.


The puts have a delta of less than 0.01, suggesting a probability of less than 1 percent that they will expire in the money. These contracts are too far out of the money to be hedges, so this is an odd "tail risk" trade. (See our Education section)


From Tyler Durden and Zero Hedge: The Treasury bond has now closed for 2013 with the (highest duration) 30Y Treasury Future down 13% for the year. Of course, those invested in fixed income are not all long the long-end but across the whole complex yields are at highs.








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