Big Print in SPYders (SPY). Shares erased early gains and are down 16 cents to $103 midday. In the options, 30000 SPY Nov 95 – 85 put spreads trade for $1.55. It was part of a larger purchase of 50000 for $1.55, according to a floor contact.

Looks like a new position. If so, this investor paid $1.55 (excluding commissions) and has a potential pay-off of $8.45 if the Spiders sink to $85 or less by the November expiration, which represents a move of more than 17 percent. Yikes! It’s probably to hedge a portfolio heading into the historically volatile months of September and October.

2 users commented on " SPDR S&P 500 (SPY) $102.92 -0.23% "
Follow-up comment rss or Leave a Trackbackboyz collection protection money again? But then again, this market is due for a pause. These big trades usually occur before a significant correction, no?
Yes, looks like a portfolio hedge, but a big one! Risking $1.55 to make $8.45 if SPY falls to $85, which would be a correction = to 17.4 percent.
A little too bearish for me, but there has been a lot of bearish “smart money” flow today–MAR, WFC, MS.
The RDN is interesting–buying puts that are 73 percent out-of-the-money.