Since each options contract is worth 100 shares of the index, the total premium involved in putting this trade comes out to $5,017,500.
That trade breaks even down at 2,487.70 on the S&P, which would represent a decline of about 13% from Monday's close, or nearly 30 points below where the index closed 2018. It's not every day that a trader puts on a hedge this big against such a direct proxy for the broader equities market, but the move in the index wouldn't be unprecedented. Just last year, between the S&P 500's highest close and the Christmas Eve lows, the index plunged 20%. As an investor with a large portfolio, this trader decided not to get burned again.
"To put some perspective on the size of this trade," said Khouw, "that would be a hedge against a portfolio of about $560 million."
Bears are coming, short play life is coming!
More money has been lost timing the crash than the crash itself. Sounds like a hedge
Betting against a strong economy is a suicidal move.I prefer putting the same money in gold.
Hmm 🤔 Market manipulation? Who can afford a trade like that? Think... The Globalists hate President Trump & what realDonaldTrump has done with the U.S. Economy, could they now be manipulating it to bring him down? ...Everything else they’ve tried to destroy him has failed.
smart guy . this is biggest bubble in financial history. even FED cant help it. even zero interest rates cant save them. its going down %40 next 2 years.
I think he’s right. Recession coming.
You’d have to know this trader’s total current exposure before you can be sure it’s a bet against the S&P and not simply insurance.
What an idiot LOL
Bull gangs holla up.
Batshit crazy Santelli is now blaming the FED, for destroying the economy, by raising rates a 1/4 point. It wasn't too long ago when batshit crazy Santelli was blaming the FED for having reduced rates (sugar high) for so long that the U.S.A. would never be able to recover.
I hope this trader gets annihilated.
STOCK MARKET CRASHING! Where do you hide your money now? Cryptocurrency RIPPLE $XRP or $BTC bitcoin? Watch:: APompliano business Bakkt ErisX_Digital DigitalAssets PeterSchiff Crypto AOC RepAOC realDonaldTrump
RecoveryForQ
Where is all of your screaming -Markets in turmoil, MARKETS IN TURMOIL !! Is this today's version Assholes.
Why not ! Better .! follow market action every day and with 5 M ! A lot Margin to act
Protecting his $50 million.
That should help the market bounce back, shouldn´t it?
The big short
Way deeper than '19 gains
It is good sign for market will go up
Trump?
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