Massive Put Options Purchased on the S&P 500 Indicating a Year End Crash? Pt 2

[MisterE103]

YOu have to watch the open interest to see if they are buying those puts or daytrading them. If they're being bought and held we should see the OI increasing by an amount close to the daily volume.

[globalfinanceschool]

Ohhhh! a Year End Crash? 

[StockMarketFunding]

@globalfinanceschool thanks for tuning in! Check out the NOV 1200 Put, one of the ones we highlighted...down $9.6 or -26.23%.....54,777 TRADED between $29.80 and $24.7. They're underwater from yesterday's purchase but still buying big! On a weekly level there have been 230,875 traded vs 40K traded last week.

[globalfinanceschool]

@StockMarketFunding Ok, thanks! I look forward to more vids. Cheers!

[MisterE103]

@StockMarketFunding  Those puts are costly time premium is huge and they move the same as the SPY puts, so wouldn't you get more bang for the buck purchasing SPY puts?

[zeproo]

I don't see a rollover here



[StockMarketFunding]

@zeproo today's options expiration :-) You know how they pop things ups when things expire :-) All these puts are taken to the woodshed today, you have to love it!

[guitarkrazzzy]

so its either we're gunna go down big or go up bigg... would it be smart to trade jan12 calls and puts to spread the risk?

[StockMarketFunding]

@guitarkrazzzy you have a lot of premium risk in JAN12 contracts, you're best to buy deflated calls and puts intraday instead of just jumping in at retail prices on calls or puts

[PiroozAzDirooz]

The question is when in the past was this many Put option contracts purchased?

What date, if ever. And if yes, what happened after that date?

[StockMarketFunding]

@PiroozAzDirooz on a daily level, most puts are thinly traded and today's volume and money flow was one of the top days since the contract started trading

[PiroozAzDirooz]

@StockMarketFunding I understand. But my question is historically in the past say 10 years, when did a similar thing happen in put option volume for SPX? if anytime? And if it did, what did the SPX do afterwards?

[StockMarketFunding]

@PiroozAzDirooz there is no database or information regarding that. Once options expire, so does the data. I'm sure brokerage houses have this information but you can't do studies like that unless you're there to record it. Every time we've highlighted massive puts purchased...they've gone worthless, hope that helps.

[PiroozAzDirooz]

@StockMarketFunding OK, thanks. So it seems it is more of a hedging type thing rather than have any prediction value per se. We seem to be rallyingto high heaven on SPX as we speak on the hope that EU will start up those money printing machines which is taking a page out of the Fed's book basically.

But how long will the rally last? And how will t"addict junkie" keep climbing when it does not get its "fix" anymore later?

[ChartingPlatform]

NICE WORK!

[StockMarketFunding]

@Will224000 we agree! People are left with nonsense we call capitalism yet poor never get ahead!

[mrzack888]

which is the better? futures or options for shorting the market?

[StockMarketFunding]

@mrzack888 both can be manipulated overnight, options are great intraday we don't trade futures much, i would say options and futures are good overnight at the best price levels, most times 75% they are not at that price levels and people are subject to market volatility torture!

[YoBravaFrumAnuvaMuva]

I also see nearly equal amount of call buying on the S&P at these same price points. I am very new to trading and may be reading the volume wrong. I see the 11375 in the 1205 puts, but there is also 11248 on the call side. They are pretty balanced. I just want to make sure I'm reading this right and/or would like to see your take on what appears to be an equal amount of call buying for the levels you refer to in this video. As always, a huge thanks to you for these videos!

[StockMarketFunding]

@YoBravaFrumAnuvaMuva you are correct, the 1200 Call for DEC 2011 traded up $2.15 to $62 with 57,027 traded, that strike alone is $353M...but we didn't think that was the main story so much as we personally feel they "options market maker" is selling them...on both sides, now we can discuss "how to make an income" :-)

[YoBravaFrumAnuvaMuva]

@StockMarketFunding Thanks for the reply. For now, this is over my head and I don't understand how to interpret the data or how you come to these conclusions. I do think that they will drive the s&p above 1250 to trigger stops...then bring it back down as we approach the end of the year. I hope this is the case, anyway. :)

[Will224000]

1. End the FED - take back our money from the private Corporation and create our own Treasury Notes, providing 0% interest loans to the Cities, States, Small Businesses, and Students to get our Economy back on it's feet.

2. End the era of PAC influence in Washington, eliminating them entirely.

3. De- Personhood Corporations. They are not people and should not be allowed these privileges .

[StockMarketFunding]

@Will224000 btw, some D-Bag marked your comment as spam...made sure to hit the "not spam" button!

[Will224000]

@StockMarketFunding ...thank you... we can build a new Capitalistic, Free Enterprise Economic System that is fair to ALL...

[moviematcanada]

@StockMarketFunding

Seeing a lot of that these days, it seems to be getting worst the last 60-90 days. It's got to be the FED or one it's supporters!

[Will224000]

4. Eliminate Fractional Reserve Banking - If a bank does not have the money they will not be allowed to loan it.

5. Re-install Glass- Steagall - separating the function of Savings Banks from Investment Banking.

6. Major Wall Street investment reform that outlaws Derivitives, Short Selling, Hedge Fund, and Algorithmic Trading.

7. Redefine Federal limits back to the Constitution, giving most of it's present powers back to the States, back to pre- Feb. 17, 1871.

[OptionCzar]

@Will224000 i'm sorry but you forced me to hit the "THUMBS UP" icon next to your comment! Seriously, when does it end, when market makers can see the lined bid/ask size and prices and have computer algorithms designed to manipulate weak price points to create deflated options prices, where is the legitimacy of that? All the rules designed to protect investors have been repealed or completely un-enforced.

[mrzack888]

so this is a graph of a put ?

[StockMarketFunding]

@mrzack888 yes! Most retail trading platforms don't offer "options charts" and it's very unfortunate, that information is kept quite so people have no idea when they're jumping in or out. Only professional trading software have this type of feature.

[mrzack888]

@StockMarketFunding good thing i subscribed to you. 

[ragedmaximus]

GREAT NOW I CAN LOAD THE BOAT AND GO LONGGGGGGGGGGGGGGG

so they can push this market up to make it worthless as usual

[StockMarketFunding]

@ragedmaximus haha, great point! I was making a comment to a friend "They're just trying to make up for all those losses from the 1150 OCT Put that will go worthless tomorrow". The difference between this alert and OCT was the price level they were buying at were far closer to the lows than the highs. In OCT they bought highs to go worthless, these contracts were as high as $488.47 so they're not quite as retail as they once were. With this level of buying, wouldn't shock us if they =$0 on exp