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Andy Zaky
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Andy Zaky is a Hedge Fund Manager at Bullish Cross Asset Management, and editor of the Bullish Cross financial newsletter. His main area of knowledge is in global macro economics, fundamental analysis and technical analysis. Andy has about 14 years of investment experience, a strong background... More
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  • Surging Put-to-Call Ratio Today (3-to-1) on the Indices 9 comments
    Sep 7, 2010 3:17 PM | about stocks: SPY, QQQ, DIA, AAPL, GOOG, AMZN, BBRY, GS, XLF, BAC, ORCL, HPQ, CSCO, DELL, MSFT, USO, TLT
    Something abnormal is going on in equities right now. There's a massive amount of put buying on the CBOE. As of 1 pm EST., there's nearly a 3-1 put to call ratio on the CPCI. This is not even close to normal behavior on the indices. We only see a 3-1 put to call buying on the CPCI in very steep downturns. We could see an immediate huge sell-off coming in equities. It doesn't look good for the short term at least. Last two times we saw put buying of this nature was in September and November 2008. Be careful. Read Cobra's Market View for more this afternoon.

    Disclosure: All Cash
    Stocks: SPY, QQQ, DIA, AAPL, GOOG, AMZN, BBRY, GS, XLF, BAC, ORCL, HPQ, CSCO, DELL, MSFT, USO, TLT
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Comments (9)
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  • jimmy john
    , contributor
    Comments (190) | Send Message
     
    Today's number is distorted by some large trades in SPY Oct 100 and 103 puts.

     

    The ISE p/c equivalent that I follow is currently at .82 and that is a neutral number.
    7 Sep 2010, 04:06 PM Reply Like
  • Andy Zaky
    , contributor
    Comments (541) | Send Message
     
    Author’s reply » Maybe. But those are really big trades right? I mean anytime you look at the CPCI there always some type of explanation. The fact of the matter is a lot of puts traded hands right?
    7 Sep 2010, 04:09 PM Reply Like
  • jimmy john
    , contributor
    Comments (190) | Send Message
     
    I think today's action (9/8) tells you never to depend on one indice to make a call.
    8 Sep 2010, 11:09 AM Reply Like
  • Andy Zaky
    , contributor
    Comments (541) | Send Message
     
    Author’s reply » Yeah. But caution should be there. Someone did take a huge chunk of puts yesterday and on the SPY no less. That does deserve some caution. I have a very high winning rate so don't give a crap about 1 trading day. Would rather preserve my wealth when the risk does arise. I can trade on hundreds of other days.
    8 Sep 2010, 01:58 PM Reply Like
  • jimmy john
    , contributor
    Comments (190) | Send Message
     
    Good luck with your hedge fund.
    8 Sep 2010, 02:48 PM Reply Like
  • Travis Lewis
    , contributor
    Comments (309) | Send Message
     
    @ Jimmy

     

    Do you have any word if that put spread was sold or bought?

     

    Just by looking at the open/close change on the 103, I would say it was a credit trade as the MM made them sell lower than fair market, although the 100 looks normal.
    7 Sep 2010, 05:39 PM Reply Like
  • jimmy john
    , contributor
    Comments (190) | Send Message
     
    The ISE is at .56 – getting near bearish; some large blocks are distorting....

     

    I think the 1111 neighborhood is looking toppy here.

     

    Let's wait and see what the beige book and obama have to offer today.
    8 Sep 2010, 11:13 AM Reply Like
  • Travis Lewis
    , contributor
    Comments (309) | Send Message
     
    Yesterday 9/7...Someone fired off 25,000 puts on the S&P index Nov 675 strike too so....
    9 Sep 2010, 12:12 AM Reply Like
  • jimmy john
    , contributor
    Comments (190) | Send Message
     
    The SPX has crossed a down trend from the last intermediate high of August 9th (a positive). Even so, there is still ample resistance above the market in the 1130-1150 area, and with bullish sentiment moving up quickly, we're approaching an inflection point here, maybe a small sell off next week before the expiration. That would make the bears happy and still keep the bulls interested.
    9 Sep 2010, 01:33 PM Reply Like
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