16 votes

Some Trader Has Made A Very Big Bet That Something Very Bad Will Happen Within The Next 60 Days

Well folks, looks like things are going to start heating up in more ways than one. Here we see some trader betting 11.25 million that something bad is going to happen. Read this from the story:

"Last week somebody put on a call spread on the VIX using the April 20 and 25 puts. They bought 150,000 contracts for a net of $75 per contract. That is an $11,250,000 bet that the VIX will move over 20 over the next 60 days."

http://www.businessinsider.com/art-cashin-on-big-vix-bet-2013-2

What is coming soon are the days of Purim on February 24-25. We also see the Ides of March coming and the typical attack month for the warmongering evil banksters. The dates of March 21-22 are the favored time period, but the new moon time around March 11th is more than likely the window of time they might use. The banks are in big trouble and they need to create something to cover up the crash they created so they can escape during the chaos.

Many people are leaving the country in a panic right now. There seems to be a rush to get out of the country. People, please continue to prepare as fast as possible and be more vigilant than ever. It is a good time to neighbor up!

+

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

if he was confident he

if he was confident he wouldnt have bought the spread hed have just bought the calls or sold the puts. stop spreading hype idiot. and 11 million is nothing.

VIX up >19% today

Still didn't break 20 though.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

someone is pretty confident

someone is pretty confident something is going to happen.

Doesn't mean anything

VIX is just a volatility index, betting that the market will fluctuate quite a bit. If you want to make a bet that the market will drop, you'd put your money in something like TZA, where it goes up when the market goes down.

BTW, the market is at new highs, so it's due for a correction. My guess is from now to the next couple of weeks, so a bet in TZA would be a pretty good one. It's also a pincher pattern (see the white line at the bottom pinching against the green/red lines above it?)

http://stockcharts.com/h-sc/ui?s=TZA&p=D&b=5&g=0&id=p6772937...

take 11.25 million of your

take 11.25 million of your own money and bet it on something... I bet it would mean something to you.

Honestly

Just the fact that its the year 2013 has me a little worried. The number 13 is of great significance to the occult, which is the core of what the NWO is.

"If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy." -- James Madison

i see your sarcasm and raise

i see your sarcasm and raise you a pun. if youre not joking, youre fscking dumb. wait that was a rhyme.

Misleading and incorrect

First of all, for a Wall Street trading desk or a hedge fund this is not a massive bet. $11mm in a trade like this - in which you lose everything if VIX does not reach a level greater than 20 before the April expiration but make double to 6 times your money if it does - is likely someone trying to hedge a long trading book or other long position.

It does seem to be a very confident bet, though. Assuming the position to hedge is $500mm to $700mm, this would protect the holder against a 10% sell-off; however, the cost to do this seems pretty high at a few percent of the book (e.g. you will take a guaranteed +/- 2% loss if the market doesn't sell off, excluding whatever you make on your long position if the market continues to defy financial physics thanks to Bernanke's hot air balloon.

Also, these would not be VIX puts but calls. For those who despise finance and this entire conversation and may not know what this person did:
(S)he paid about $1.25 for the right to "buy" the VIX index prior to April 17 at a price of $20 per "share" on a total size of 15 million shares. (I put "buy"and "share" in quotes because VIX is a computed number based on the price of options... It's all very sophisticated and complicated, so leave all of that up to the "experts".) Anyway, the trader also sold to someone else the right to buy the 15 million shares of VIX at a price of $25 per share before April 17 in exchange for around 50 cents per share... So net, the person paid 1.25 per share for 15mm call options (right to buy at 20) and sold 15mm calls (right to buy at 25) for proceeds of 50 cents per share... 15mm * (1.25-0.5) = $11.25mm. I am using 15 million instead of the stated 150,000 because each option contract conveys the right to buy 100 shares for anyone trying to bridge to the article who is still following.
The VIX is currently at 13.41. If it goes to 20, it will be coupled with a major stock market sell-off (i would say around 10%). If VIX remains below 20, trader loses all his (our) money. If VIX settles above 20, the profit from the trade would be the lesser of 25 or the VIX settlement price minus 20 with the result of this calculation multiplied by 15 million and the reduced by the $11.25mm net price paid for the options.

Happy to clarify further if anyone wants. Don't read too much into this, though. Not that I think the trade is a bad one, the only reason I haven't gone into lock down mode is that I have been bracing for do long without a reckoning... Doesn't mean the reckoning isn't close. It feels a little closer every week.

Stay safe, brothers and sisters in Liberty.

Unlearning and self-teaching since 2008. Thanks, Dr. Paul!

Biggest Fund Withdrawals since 9/11

http://www.dailypaul.com/272200/us-banks-shaken-by-biggest-f...

"Its easier to fool people than to convince them that they have been fooled."
Mark Twain

You can make the same bet if you believe it, but I won't

Anyone can open up a discount brokerage account and place bets. It only costs a few dollars above the cost of the trade if you do it yourself. I won't do it though. The VIX is nothing tangible. Buying options on future movement of the VIX is pure gambling. Some people have deep pockets and are willing to gamble with millions. It isn't a bad bet that the VIX will move up when it has been down so long. However, I would rather buy physical silver and gold and have my money out of the system completely if I think things are about to go to hell in a hand basket. Otherwise, I'd rather buy stocks in companies that create real things like oil, gas, or metals.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

I like OGXPY

Brazilian gas and oil exploration company turning their finds into wells. Its ran by a Brazilian billionaire who has most of his fortune invested in this operation. The guy is basically betting the farm on this.. Its price got hammered the last year so they guy paid inflated prices for shares of stock to give the company another billion or so to keep operations going for a couple more years while they get wells activated. Something to look into for a gas play.. Brazil has lots of oil and natural gas being tapped right now.

wtf

Why the down vote for suggesting something I have been following that happens to be in the area the original comment suggested as a good buy?

Like the

shorts on 9/11.

Move on nothing to see here.

Luke 3:38
Isaiah 43:3-5

i am actually betting on 21 days or less..

.

the Chinese New Year

is in 3 days...then we enter the year of the snake