Rally time, let's see if it holds, bought TNA XIV AND JDST yesterday hoping for a huge rally, will sell all positions most likely today....if oil turns down hard markets will follow.
Out of xiv at $30, bought at $29 Out of jdst at $10.65 bought at $10 Free money, now waiting for next drop Still holding tna.
Trader buying 80,000 calls on spy..... $1.84 million bucks to make $50,000,000 The million-dollar bet on a speedy market rally Alex Rosenberg | @CNBCAlex 21 Mins AgoCNBC.com 29 SHARES As stocks break their recent losing streak on Wednesday, one trader appears to be making a big bet that fresh all-time highs are around the corner. Shortly after the market opened, one trader bought 80,000 February 215-strike calls on the S&P 500 ETF (SPY) for 23 cents per share. In total, the trade (which was executed in a few separate blocks) cost $1.84 million in options premium Since a call grants its owner the right (but not the obligation) to buy the underlying asset for a certain price at a certain time, this call option allows the trader to buy the SPY for $215 on Friday, Feb. 20. Profits come shortly above that, at $215.23, because the trader has to make back the premium paid for the call option itself. That would roughly correspond to a 138-point rise for the S&P 500 itself from Wednesday's open, easily making for a fresh record high. The low cost of this option relative to the price of the underlying ETF (which opened Wednesday at $201.42) gives the trade an interestingly asymmetrical risk-reward relationship. In the scenario in which the SPY doesn't rise the requisite 7 percent from Wednesday's open, or even falls dramatically, the trader will lose only the $1.84 million laid out. However, if the S&P rises, for instance, 10 percent in a month and a half, the trader will make $50 million, for a 2,700 percent return. Read MoreHere's what happens to stocks when oil drops 50% Getty Images Trader on the floor of the New York Stock Exchange. "Basically, someone's taking a shot here," said options expert Brian Stutland of Equity Armor Investments. He points out that the S&P 500 fell below its 100-day moving average on Tuesday, and opened just above that smoothing mechanism on Wednesday. "The last couple of times we've rallied off the 100-day, the rally has been fast and furious," he said. "It kind of makes sense that someone's going to buy some calls to see if that will happen again." Matt Tuttle, whose Tuttle Tactical Management specializes in tactical ETF-based investment strategies, does believe that the SPY is setting up for a strong bounce off of the lows. "At some point it's going to be the top, but I don't think we're there yet. We're thinking you'll get yet another V-shaped recovery," he said. But that doesn't mean Tuttle would jump aboard this trade. "$215? That's a tough one," he said. "I think we will cross $215 eventually, but I think Feb. 20 is a little too optimistic." Follow the show on Twitter: @OptionsAction.
Permabear once again in play. Short 2022.9 stop 35. This risk free BS is not what it cracked up to be. Only managed a 2 point advantage over my last short.
"Long spxl at $85...just for a bounce then back into even more TVIX and CVOL....." "Free money" isn't occurring when you are losing 5% within a day on anything. SPXL was below $81 not long after and still remains below $84. Holding such an instrument on a day that has a higher probability then most to be a serious correction is dangerous trading. So you are still holding tna ? No sign of spxl it seems, you'd think someone couldn't forget their holdings in a high risk trade, suggesting you aren't actually holding any of these in reality. Provide a time stamp plus price of your actual entry and exit on spxl and maybe I'll believe you.