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Rumor Of Large SPOO Put Order Pushing Market Lower
The sudden bout of market weakness has been attributed to a large ES Put order in the process of being executed. We will keep an eye out on the most active options and confirm if and when this hits the tape. Indeed the tape so far does show a preponderance of various Puts (top 6 contracts by volume are all bearish) with the 700 strikes showing up consistently, as someone continues to put on major bets on a large swoon in the market.
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Meat Jello. Served chilled.
come on now ZH
this farce does not require some lame-ass rumor like that to trade lower
stunned that you would imply here, as you do, that it does
did they get to you? did GFS buy ZH overnight?
Um...you do need sell orders to push a market lower. That's how it works.
It's not a rumor, it's an actual trade being placed. This was happening yesterday around the same time too. 700 puts are normally used to drive the market lower so that they can play their other options. Note the intraday dip followed by the ramp yesterday. This isn't hard to figure out.
yes....Cheeky posted on those puts yesterday.
It's not a rumor.... Mandy Drury has a tiger tail around her neck!!!! That's a bad sign for the markets....
Back to serious matters.... just check what yields are doing today... uhhh yields going down and S&P is going to go up again???? too much of a gap!!!!.... just wait after Ben testimony... he is holding S&P just with his fingers as soon as he is done talking just wait an see....
http://img249.imageshack.us/img249/9844/ready2r.jpg
Brilliant.
+ a trillion ben-jamins!
looks like Ben needs about 8 or 10 more arms (or tentacles) to keep this one up...
He needs to be taller.
Spot on with the treasury yields analysis - a spike in the ZN has preceded every ES plunge since 1108...
Bernanke will not accept a failed auction. Blue Horseshoe says sell the spoos and buy the twos.
+1
+10
Ouch Banster T Cubed...you need to vent in another direction as ZH remains the most "call it like it is" source out there. Maybe Steve Liesman and Julia "put Barbie back in the box" Boorstin would be a better market source.
ZH is heroic
it is Holy
and so I was upset
sometimes I lose my temper
so sorry
Granny, please... Objectivity is def not one of ZH's strengths.
Examples?
Please be sure you're not equating 'objectivity' with 'neutrality'.
No, objectivity: expressing or dealing with facts or conditions as perceived without distortion by personal feelings, prejudices, or interpretation
http://www.zerohedge.com/article/ism-services-miss-provides-major-boost-...
Let me know if you would like me to add another one...
Rack 'em up, baby. Of course, opinions are not objective, but easily discerned the difference, n'est ce pas? Please pile on examples of no objectivity, because that divergence, well, we can do a trade, right? Short the <opinion faked as objective> and long <objective commentary>. Then it converges, we all win that trade.
Our benefit for your effort, perhaps your benefit too.
- Ned
Perhaps you would like to enlighten us as to some more objective sources?
Don't confuse content with objectivity. ZH is first class in providing quality reading material (remember those internal MS reports that were posted here last spring hehe) but the interpretative spin that is added to the content is questionable...
Abiggs confuses his own objectivity with arrogance. That's why he has to consantly remind us his "wisdom" and "objectivity" on ZH when no one asks for it.
Let me help you out because you still seem to miss the point. When you make statements (That's why he has to consantly remind us his "wisdom" and "objectivity" on ZH when no one asks for it.) due to an inability to control your emotions that neither apply to nor have anything to do with the comment I made, you only make yourself look ignorant.
Next time please ponder this before you decided to take a shot at me; it might help you get your point across better...
Now all is well. Green all around...
Sorry for the inconvenience folks... Had to reset buy-only server.
Duplicate post.
Hmmm. Daddy owns the Aug 1020 puts. Let's do it!
I put out a large SPOO this morning and the market didn't do anything.
+nice+
Excellent, dude.
Me too.
...and wiped with fiat. That's where you went wrong.
This sounds bullish...
I am about to digress here, so apologies. Why do all the Fed's charts show that we are out of the (dep)recession already?
The NBER puts those out, not the Fed.
http://www.nber.org/cycles/cyclesmain.html
http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/arch...
Here's Why The Folks At NBER Haven't Said The Recession Is OverRocky, has the NBER gone back to Vegas and placed a bet on the 2007 SuperBowl (TM)? Dang, what a job to have. - Ned
LMAO!!! or in reality, ES couldn't reclaim 88 1/2, so down it goes to maybe 60s
http://i.imgur.com/fuyy9.png
why would anyone not want to invest in this:
Spoo is a meat based food product produced by the Centauri Republic and is a staple of the average Centauri diet and a favourite of Londo Mollari.
Actually spoo are "grown" mostly by the pakmara and enjoyed by many races.
and to think that someone might be shorting such a loved staple product. agriculture is at multi year lows.
wonder what Goldman is advising his clients....
I'm coming in with a large order of spoos on indirect order from R. Emanuel himself so beware.
the HFTs have gone nuts
When ever that crook Bernanke is talking the stock market always rises.
here we go again...
Maybe the buying has something to do with the rise of these tail-risk funds:
http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a0tbiS7HfS60
the dow just took my breath away with a nice little plummet. c'mon baby....crash and burn.
BDIY is up again. Looking at the past week, it is up and increasing velocity.
Ask Nassim Taleb and Mark Spitznagel why they are placing deep OTM orders. Nassim is the specialist for "black swans". Will not happen. May 6th they entered the trade with 800 puts and exited too late...ouch
Universaa had a 120% return last year on their vol arb fund. I know Mark very well. If it is them buying I would pay attention.
But Taleb is dealing in White Swan territory now, no random variables with respect to life need apply here. - Ned
ROTFLMAO
Tanks guyz...
Feels like "The Euro Hour" is back in vogue. That would gather some excitement.
Did Ben see a Gartley Bear?
http://www.screencast.com/t/ZThlOWZkZDgt
I just don't see any irregular volume in the es puts today, in any month, and that is what I trade. However paper is looking to buy the u 700 puts for 80 cents in the pit 1000x.
*** quick edit 10,000 of the u 700 traded in the spx, 80 cents.
there's also 4000 DIA puts at the 70, or 7000 August strike. As a matter of 87 redux, the cause of that crash was related to put sellers, who were far out of the money, and got caught when the bid vanished. it's hard to discern who initiates these trades, the buyers or the sellers, but it makes a difference. It takes a lot of margin to sell a large block of puts, and only big institutions or players have that sort of backing. I see the trade was made a dime lower, does that suggest the seller initiated the position? That's usually bullish.
Just a spectator here but if ES successfully completes an apparent inverse H&S, then I could get bullish.
http://www.screencast.com/t/YTVjYTQ4YTMt
and '87 "synthetic put" portfolio insurance got blamed. But e.g. Jack Dreyfus was out with all of it two months before and Marty Zweig had an advisory to put... bad memory ... 3% maybe ... into atm puts.
bullish now? macro view says not so much.
- Ned
Good info so far a 14 point drop since you released this. 1066.5
DOW chart update :
http://stockmarket618.wordpress.com