Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (92294)	1/3/2009 11:32:06 AM
From: ajtj99	Read Replies (1) of 116555

Wow, 148,967 Dec. 2010 SPY puts purchased yesterday. It shows up on the AMEX option stats, so it must be legit. That's a monster trade. It's somewhere around $62-million at the closing price yesterday, although it could be as high as $75-million if they got a great fill early in the day. My first thought was it could be similar strategy to the Buffett trade where he sold deep, out of the money puts 10-years out on the SPX through Goldman. Of course, the fallout of that trade meant Buffett had to buy part of Goldman to get them out of the doghouse on his position. The other thing that came to mind was a mis-typed order that was enterered, filled, and then had to be reversed. We didn't hear anything about that, so it's probably doubtful that was the case. I really doubt anyone purchased puts that far out of the money that far out in time even if it was an attempt to hedge. You just don't see that kind of move from the pro's. What are your thoughts on that trade?

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