Something ‘Very Bad’ Will Happen In The Next 60 Days: A ‘Mysterious’ Trader Is Betting On It!

An 'options trader' has made a 11.25 million dollar 'bet' that something VERY BAD will happen within the next 60 days. What does this person know that we don't? According to this story from Business Insider, WE ALL need to be VERY ALERT over the next two months.

Stocks have been rallying relentlessly to post-crisis highs.

Meanwhile, the volatility index (aka the VIX, aka the "fear index") is near historic lows.

But according to UBS's Art Cashin, some options trader has made an enormous $11.25 million bet that the VIX will explode higher very soon.

And a rally in the VIX is usually accompanied by a drop in the stock markets.

He then goes on to list some of the scheduled events and deadlines visible over the next 60 days (mostly in Washington). When you add in the broad variety of geo-political possibilities, it's a decent reason to stay extra alert.

Hopefully, this person is wrong.

Read more: http://www.businessinsider.com/art-cashi...2#ixzz2K8fEBcmC

It is not just one trader.

http://investmentwatchblog.com/do-wall-s...68Ri5LYcpker.99

I doubt it. What will really happen? Probably just continue our long, slow decline.

Quote: Weird Tolkienish Figure wrote in post #3

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I doubt it. What will really happen? Probably just continue our long, slow decline.

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Zitat

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An 'options trader' has made a 11.25 million dollar 'bet' that something VERY BAD will happen within the next 60 days. What does this person know that we don't? According to this story from Business Insider, WE ALL need to be VERY ALERT over the next two months.

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I agree. Bad things are going to happen. "Honey Boo Boo" is getting renewed for another season.

Quote: The_Nevadan wrote in post #2

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It is not just one trader.

http://investmentwatchblog.com/do-wall-s...68Ri5LYcpker.99

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Another article posted yesterday
Denninger

http://market-ticker.org/akcs-www?post=217288

Now back to dealing with that evil four letter word s**w.

Reply yesterday from friend who plays in options --

Hi: "W-GIRL"


It is what it is....


Take a look at the attached chart...the one on the right is a monthly chart. Don't look at the indicators below as they'll confuse you.


Note that as the price is increasing the volume bars are decreasing (SHARK MOUTH IS OPENING WIDER) This portends that the market has no strength behind it to continue it's upward momentum. What usually happens here is that the average Joe is the one buying the issues NOT the Mutual Funds or the big guys...they're on the sidelines or as the article points out setting up for the correction (fall). Note that they bought Puts they didn't sell the stock which would have an adverse effect on the market where the option purchase simply raises eyebrows. So the market is diverging (price vs volume) meaning that THE SHARK IS LIKELY TO BITE = (market correction)


I agree that the market is setting up for a correction as it approaches the all time high of 14267. It may even creep over that high if some economic news is relatively positive, but if the big guys don't buy in, it will reverse rather quickly probably on some adverse economic news.


So my take is be cautious. If you're playing the market, look at a chart of your issues, I suggest you look at the weekly and monthly as in the attachment. Decide (based on the monthly) how much you're willing to give back to the mkt and set a sell stop with your broker. So if the mkt comes down you won't ride it and feel the pain, you'll be out with the loss you accepted by your stop order placement. If you don't have this...I'd be happy to look at your issues on my charts and tell you what I see.


Hope this helps
Talk soon -
"Mr. Options"


(His "Charts" came in a Word Document and I have no clue how to post them here -sorry !! Heis ?? )

I think a lot has to do with your outlook on the markets (short, medium, long term).

I'd say anyone who has a medium/long term view shouldn't get too concerned about market corrections of 5-10%.

Shouldn't this be in the conspiracy forum?

Oh, right. Not when it's posted by someone else. Silly me.

Quote: Quix wrote in post #10

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Shouldn't this be in the conspiracy forum?

Oh, right. Not when it's posted by someone else. Silly me.

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Quote: W-Girl wrote in post #8

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Reply yesterday from friend who plays in options --

Hi: "W-GIRL"


It is what it is....


Take a look at the attached chart...the one on the right is a monthly chart. Don't look at the indicators below as they'll confuse you.


Note that as the price is increasing the volume bars are decreasing (SHARK MOUTH IS OPENING WIDER) This portends that the market has no strength behind it to continue it's upward momentum. What usually happens here is that the average Joe is the one buying the issues NOT the Mutual Funds or the big guys...they're on the sidelines or as the article points out setting up for the correction (fall). Note that they bought Puts they didn't sell the stock which would have an adverse effect on the market where the option purchase simply raises eyebrows. So the market is diverging (price vs volume) meaning that THE SHARK IS LIKELY TO BITE = (market correction)


I agree that the market is setting up for a correction as it approaches the all time high of 14267. It may even creep over that high if some economic news is relatively positive, but if the big guys don't buy in, it will reverse rather quickly probably on some adverse economic news.


So my take is be cautious. If you're playing the market, look at a chart of your issues, I suggest you look at the weekly and monthly as in the attachment. Decide (based on the monthly) how much you're willing to give back to the mkt and set a sell stop with your broker. So if the mkt comes down you won't ride it and feel the pain, you'll be out with the loss you accepted by your stop order placement. If you don't have this...I'd be happy to look at your issues on my charts and tell you what I see.


Hope this helps
Talk soon -
"Mr. Options"


(His "Charts" came in a Word Document and I have no clue how to post them here -sorry !! Heis ?? )

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testing

Thanks Steph !!