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A listing of the most active SPY options by open interest indicates 3 Calls... and 29 Puts.
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I think it's also notable there are no December Calls in this list.
What's up with that. December is the best month for bulls right?
I think the smart money is pricing in significant downside risk between now and end of year. . . I mean S&P forward P/E is like 120 right? Puplava says S&P P/E at 18.37... Perhaps these options are suggesting mean-reversion and a dose of reality...
they were paying other special dividends. What a great business
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You are such a fuckin' dickhole.
Take a look at the Dec 2010 open interest, nice little 55-50 spread going on there.
Someone going to get hurt Friday.
John Paulson also made some enemies last week, look at the open interest on the BAC calls for August.
This is not really indicative of any direction. The puts are active because many a discouraged bears are scrambling to unload them to save 20% on those contracts.
Unless I am missing something and there is a pattern here established from prior pre-OPEX day option activity then this information is not really useful for trading.
The good news for the bears is that there is no POMO cash for clunkers treasury return program tomorrow.
Interpreting options volumes is not so easy.
Put buying is a common strategy for investors with long positions who want to purchase protection against downside moves in the market. IVs are cheap now, so this kind of insurance buying is not particularly expensive. Such investors can even buy MORE equities with such insurance in place.
Making the activity presented in the screen shot a purely bearish observation is not correct.
And no, no one is going to get hurt Friday. Sorry. Most of the volume is already squared up and taking tomorrow off.
NO ONE is going to get hurt? How do you know this?
Will you run my portfolio for me?
Correction - The shorts will get hurt. Again. Still. Persistently.
Sources of capital that are long equities will, once again, make money.
I stand corrected.
And no, I will not run your money.
put sellers are minting money right now. it must be the Fed or GS who is writing all of these puts.
I can' understand people who are not looking at the bigger picture. Absent a big catalyst and I mean realy big(like China declaring publicly it has unloaded all of its tbs),or a huge spike in oil for political reason,there is not going to be a severe drop in the market.There are way too many incompetent fund managers who would be working for the corner store, way too many of BB and TG's friends who would have been collecting unemployment,if it wasn't for the recent rally. Idare to say that the market will stay up even if it means BB has to collaterize all the junk on GS and JPM books. Don't be surprised if a year from now, all the toxic assets would hav disappeared from the tbtf books. Up up baby untill the last tax dollar of Joe six pack. And why not?whatever happened to all the firey talk comming from congress back in Mar?
Tail waggin' the dog.
This is outright rejection. This chart exposes the isolation problem of the USDollar
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Hey Marla,
I'm hereby requesting an automated script to remove all posts with "iamned.com" from the comments.
Some turds need the handle held down, this is one of them.
second that, and Marla please add ng2amarinefunk to that list ... morning dnarby
third on the nedban.
third
loser....
This put volume makes me believe the market will trend higher.
The markets job is to cause the most pain is it not? Put buyers will get crushed, then the move down will happen, indicating to bears that they were right but their timing was off. They'll buy more puts trying to vindicate their failed trade only to have the market move against them once more. Remember, insolvent banks are the writers of these puts...They need all the money they can get, they're in bed with the Fed and have carnal knowledge of the OMO.
Welcome to the machine....