Trader could lose more than $500 million on a single position if S&P 500 tumbles
If the S&P 500 drops below 2,100 by the end of next year, one Wall Street punter will face a costly — and now, high-profile — reckoning.
According to Trade Alert data cited by Reuters, an anonymous trader made waves in the options market on Monday by selling 19,000 put options on the S&P 500 SPX, +0.66% , which obligates him or her to buy the market benchmark if it drops 22% by December 18, 2020.
Sounds like a pretty big pullback, right? Keep in mind that the S&P closed 2018 almost 20% off its record high in September. Things change fast these days.
...
https://www.marketwatch.com/story/trader...2019-01-15
If the S&P 500 drops below 2,100 by the end of next year, one Wall Street punter will face a costly — and now, high-profile — reckoning.
According to Trade Alert data cited by Reuters, an anonymous trader made waves in the options market on Monday by selling 19,000 put options on the S&P 500 SPX, +0.66% , which obligates him or her to buy the market benchmark if it drops 22% by December 18, 2020.
Sounds like a pretty big pullback, right? Keep in mind that the S&P closed 2018 almost 20% off its record high in September. Things change fast these days.
...
https://www.marketwatch.com/story/trader...2019-01-15
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