SPDR S&P 500 (SPY)

[2bit-nothing]

Premium sucking Thursday Rub down from evil rat

"I know I should listen to my own advice (see prior post) and not even look at those damn March puts, but someone needs to explain to me how exactly they lost 50% of their gains since SPX 1040 when we only rallied 8.5 handles since 995. Can’t be the VIX - we’re only down 1.8 points - and the bid/ask spread is wider but not that wide!

Anyway, enough of my bitching - but it comes to show that being a bear is one of the toughest hats to wear even in a secular bear market - or perhaps especially in a secular bear market as downside speculation is merely condoned but not encouraged (and eventually discouraged) by most market participants. You’ve got to have a thick coat to make it through an entire Primary wave - takes guts, discipline, smarts, and a lot of fortitude. That said - I am not selling - on the contrary - let them push down those premiums and run the tape higher - I’ll just keep buying. Which is why I kept another 20% of cash on the sidelines - just for that event."


I say being stubborn is stupid. The Put buyers were dumping them at the close. It is all about anticipation for options playing man. He'll be cleaned out soon and be banging his poor wife again. LOL

2bit