I don't have the equity to sell 19,000 contracts, but I might do one just for the heck of it.
The Option pays $91.20 as per the market close 1/14/2019. $91.20 x 100 shares (1 contract) = $9,120.00 premimum. The In the Money odds are 27% which is a bit higher than my comfort level - But what the hey.
Doing a Buffett? Bet on S&P 500 causes flap on options market
NEW YORK (Reuters) - An anonymous trader caused a stir in the U.S. equity options market on Monday with a massive bet that recalled Warren Buffett's famous wager on global stocks more than a decade ago.
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.
WWWD
The Option pays $91.20 as per the market close 1/14/2019. $91.20 x 100 shares (1 contract) = $9,120.00 premimum. The In the Money odds are 27% which is a bit higher than my comfort level - But what the hey.
Doing a Buffett? Bet on S&P 500 causes flap on options market
NEW YORK (Reuters) - An anonymous trader caused a stir in the U.S. equity options market on Monday with a massive bet that recalled Warren Buffett's famous wager on global stocks more than a decade ago.
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.
WWWD