Wednesday, November 09, 2016
Who purchased 30 million dollars of S&P puts on a one day expiration bet against the establishment that will most likely pay close to one billion just from today's post election market crash?
With the Anti Establishment ticket winning, did anyone notice the massive amount of near out of the money and way out of the money Nov 9 expiring puts that were bought on the SPY on Tuesday? https://s13.postimg.org/d1tba8atj/way_too_many_puts.jpg https://s22.postimg.org/xcb0tbl0x/too_many_puts.jpg Buying protection is one thing but it's an extra ordinary level of gutsy prescience for ~ 6 to 1 put vs call bias for a 1 day expiration for way out of the proverbial zip code puts that only pay off during the massive market plunge that will welcome Wall Street traders this morning. What if the official MSM shock "Trump" win narrative is part of a pre-requisite scripted narrative for whoever is sitting behind near 600,000 out of the money 1 day Wednesday expiration puts on just the SPY's? These puts stand to be worth between 500 Million to 1 Billion by 10am and that's being conservative unless the Plunge Protection Team comes out in full force to reverse the tide. Along with Anti Establishment types, I had a feeling Trump would win seeing his 5-1 bookmaker odds against his victory Unless this was a gutsy Brexit shock drop hunch of a repeat bet by some big London Whale types, it looks like not only someone knew what the results would be hours ahead of poll closings, but they were willing to buy more than 30 million dollars in one day way out of the money put options that will now be up 1000-3000% Basically a do or die option play requiring a shock Trump Victory followed by a massive market drop reaction on Wall Street or they can kiss the 30 million dollars goodbye less than one day after placing their bets(not taking take into account the millions dollars in existing open put positions in the S&P index not to mention other leveraged securities/indexes. The put sellers are not just about to wiped out this Morning. You have to be a big time player or a big trading firm to be on the other side of those plays collecting that 30 million premium now worth close to 1 Billion owed to the put owners. It wouldn't surprise if these put option position sellers's soon to be destroyed balance sheets don't collectively trigger cascading trading firm collapses requiring emergency Fed bailouts potentially exacerbating today's market drop further than last night's futures lows.
Posted by fUny1 at 5:31 AM