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To: BenLurkin

An equally (or more) interesting question, who is on the BUY side of all these puts? That is, who thinks that the market in December 2020 will be 25% lower than its current level (i.e., a pretty horrible bear for the next two years)?


2 posted on 01/14/2019 10:22:45 PM PST by irishjuggler
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To: irishjuggler

Does this mean he’s betting ON the market(s&p)?


3 posted on 01/14/2019 10:49:52 PM PST by DIRTYSECRET (urope. Why do they put up with this.)
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To: irishjuggler

Could just be someone hedging their position as downside protection.


5 posted on 01/15/2019 4:17:07 AM PST by rb22982
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To: irishjuggler

Typically the buyers of a put that far out are protecting a holding against a drop.

So someone holding S&P 500 mutual funds in their retirement accounts may decide to by a put around their retirement as insurance against a large drop.

Personally I’ve done poorly on options this past year. I bought some calls prior to the election anticipating a pubby win in both houses and lost what I put down when the market tanked.


7 posted on 01/15/2019 6:29:29 AM PST by reed13k (For evil to triumph it is only necessary that good men do nothing)
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