schwartz: Put options like these are typically used as protection against declines, as they give the right to sell the value of an underlying index at a fixed level in the future, according to Market Watch. That's likely the case here, with Schwartz explaining that the bearish bet was probably used to protect about 5 billion in assets against a pullback. An unidentified investor early Monday paid some 49 million to buy 23,000 January put options at the 2,980 level on the S&P 500 SPX, 0.91% Schwartz told Market Watch on Wednesday. Caption outside of wrapper for normal article images But the timing couldn't have been better. The S&P closed down at 3,093, and the trader unloaded a chunk of his bet to earn a profit of 13 million, while still holding an unrealized profit on 15,000 puts. Stocks on Tuesday saw their biggest one-day fall since early October after manufacturing data showed a continued contraction in November and fresh trade jitters put investors on the defensive.
(news.financializer.com). As
reported in the news.
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