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Archive for September, 2007

Dispelling the ‘Bin Laden’ Options Trades – News & Analysis – Options/Futures – SPY – SPY

Ouch. That smarts.

It looks like there may be a plausible explanation for all of those S&P 500 puts after all. It’s part of a larger box spread financing package.

Or, maybe that’s what they want us to believe… (puts tinfoil hat back on)

I’ll still hold firm to the notion that some really, really freaky stuff is going to go down in September. The markets are starting to get spooked about what the Fed is going to do to rates. There’s some sentiment out there now that interest rates will remain flat – this will mean hell for the equity markets for the two days after that announcement. And that turmoil could result in an announcement of a rate cut shortly thereafter.

In short, September is going to be turbulent. If you have a trading method that profits on volatility, it’s time to start using it.

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