"This Is Like Free Money" Gundlach Bought S&P Puts At VIX Lows, Says "Gold Looks Cheap"

Tyler Durden's picture

DoubleLine Capital's Jeffrey Gundlach tells Reuters that his firm bought some five-month put options on the S&P 500 a couple of days ago after VIX fell to lowest since December 1993.

“This is like free money,” Jeffrey Gundlach said in phone interview with Reuters, noting that "we lost money the first day we put on the trade, but now we are doing great."

“We are in a seasonally weak period for stocks but more importantly, we think the VIX was really, really low. So the S&P puts are going long volatility”

"Now we wished we had done more," said Gundlach, the chief executive officer at DoubleLine, which oversees $110 billion in assets under management.

Gundlach said he still has exposure to gold and predicted gold prices would rise because "gold looks cheap compared to markets that have rallied a lot, including bitcoin and including Amazon."

*  *  *

Additionally, Gundlach tweeted overnight about copper (and its bearish implications for Treasuries)...

"Copper/Gold ratio soaring to the high of the year!"...

"Not good news for the "1.50% 10 year" crowd. Neither is 10 year Bund holding above 50 bp."

So, it appears Gundlach is bearish stocks and bonds... which is the direction they both traded today.

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HermanVanCuckold's picture

Gundlach also tweeted about gold technicals today.

jcaz's picture

LOL- a rookie always wishes they bot more when it works-  first time, Jeff?

Crypto Kevin's picture

So the S&P is down a whopping 8 points from it's highs and this guy is getting excited?

yogibear's picture

Hey, Gundlach the Federal Reserve will financially rape you with their stock market pumping.

wisehiney's picture

Who trots this mofo out with exactly the wrong shit at exactly the right time?

Every time.

SHEEPFUKKER's picture

A Wall Street guy talking about free money. You don't say.

Pollygotacracker's picture

Gundlach is out west in Los Angeles. He has a beautiful mind. I have invested with him for years. Good guy.

Whatta's picture

He is one dude worth listening to. Makes some good, and timely, calls.

souljaboy's picture

Let's go!!! Who's with me!?!? Aggghhh!!!

Bay of Pigs's picture

Gold looks cheap? No, it IS cheap.

Thanks Captain Obvious.

From_Under_Cheese's picture

Until a dead monkey jumps out my ass, this market goes higher. Short UVXY.

tropicthunder's picture

Gold looks cheap and its gonna get cheaper thanks to it being "price managed" by TPTB.

World citizen's picture

Free money... interesting! Never seen it, but as a metaphysical idea quite challenging...

singsagaa's picture

Im afraid he is going to be wrong on his bearish Bond trade 

wattie's picture

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finametrics's picture

i know ZH'ers dont like Gundlach. Maybe because he's a creepy looking fucker. But there's no denying that he's original and contrarian. I always pay close attention to what he says.

 

just my 2 shekels...

Golden Showers's picture

Gold does look cheap.

Like a cheap whore.

I want that.

afronaut's picture

To me Gold was cheap at 252. Not 1250