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Size Buyers in SPX Puts

Posted By Barry Ritholtz On June 12, 2006 @ 3:44 pm In Technical Analysis,Trading | Comments Disabled

I see some big buyers in SPY pPuts — the
June 125s, which expire Friday.

Both Ray Davies [1] and Bernard Baruch [2] said, "Give the people what they
want."
In that spirit, I am offering out my June 125 Put’s from $1.75 to
$1.95.

I am still long the September 120 Puts, and June VIX calls. Remember that the
VIX options are Euro style, and expire Tuesday. I expect to hold the VIX thru
expiry, unless they approach fair value.

I suspect there is an Arb opportunity in VIX options, and that will bring the
prices more into line with the cash settlement rather than the futures. We’ll
see . . .


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URL to article: http://www.ritholtz.com/blog/2006/06/size-buyers-in-spx-puts/

URLs in this post:

[1] Ray Davies: http://www.amazon.com/exec/obidos/ASIN/B00000IM7P/thebigpictu09-20

[2] Bernard Baruch: http://en.wikipedia.org/wiki/Bernard_Baruch

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