One Peoples Public Trust Milwaukee

A MASSIVE Bearish Bet Against Banks Has Traders Buzzing

 
cassicat / Flickr

http://www.businessinsider.com/massive-options-bet-against-bank-etf-2013-2

A MASSIVE Bearish Bet Against Banks Has Traders Buzzing
Matthew Boesler

 Feb. 6, 2013, 2:51 PM

According to Barron’s columnist Steven Sears, someone made a big bet against the financials ETF yesterday (ticker symbol XLF), and it has everybody buzzing.

The trader bought 100,000 put options on the ETF (a put option increases in value when the price of the underlying asset, in this case, the ETF, goes down).

To put that number in perspective, Sears writes, “Few investors ever trade more than 500 contracts, so a 100,000 order tends to stop traffic and prompt all sorts of speculation about what’s motivating the trade.” According to Sears, the trade “has sparked conversations across the market.”

The trade makes money if the ETF drops below $16. It’s trading just north of $17.50 today.
While the bet has…

View original post 220 more words

Advertisements
  1. Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s