Mind your business.

Tuesday, January 15, 2019

Anonymous Trader That Can Gain $175 Million From S&P 500 Bet Was Not “Doing a Buffett”

By: Wes Messamore

Was the anonymous trader who “caused a stir” in the U.S. equity options market on Monday with a massive bet–– Doing a Buffett?” Saqib Iqbal Ahmed asks at Reuters Business News, pointing out:

‘The trader sold 19,000 put options on the S&P 500 Index. SPX obligating him or her to buy the market benchmark at 2,100 on Dec. 18, 2020, data from New York-based options analytics firm Trade alert showed.

As long as the index doesn’t drop more than 22 percent from its current level of 2,582 by that date, the bet will earn the trader roughly $175 million in premiums.’

Read more at CCN.