I saw on a couple of "woowoo" conspiracy theory type websites mention of impending doom because of high volume of deep in the money Sep SPY 700 calls. They mention that, like before 9/11, someone is betting that the S&P 500 will be cut in half within a few weeks. I went and checked and indeed the open interest on Sep SPY 700 calls is 61,730. Seems kind of odd. Can anyone explain this?
i saw the cnn headline about hillary's comment that a terrorist attack would benefit the current GOP. that seems serious to me
Huh? You mean puts? Why would someone being long deep in the money calls portend a future terrorist attack? The nut jobs are out in full force tonight on ET....
what do you chalk hillary's comment up to? more of the same liberal screeching or whatever seemed like a politically risky thing to say, more of hedging of bets. she's not stupid the former first lady has accused the current administration of benefiting from future terrorism why?
Ã6.9bln notional value of DJ Eurostoxx50, strike price 2.800, front month. classic lotto ticket innit mavericco... puts by the way.
That's par for the course for her. AC if you havn't started discounting anything she says, or any candidate for that matter running for President, then I don't know what else to tell you.
No, it is calls, which is why it's so weird. If you sold them you could make a ton of money if the S&P goes down even a bit, but who would buy them? The next closest is 1300+ calls at 800.
Deep in the money calls behave pretty much like the underlying but require less margin so I'd think people who want the leverage on the long side would buy them rather than stocks. (and pay less premium than on closer to market value ones) It is indeed a little weird, as I think about it, beccause selling these are pretty much like going naked short on the underlying, unless of course, it is hedged. I guess it could be a bit stealthy way to participate in the market downturn than buying a massive number of puts outright. Any other thoughts?