Soros orders major PUT OPTION on S&P

From the Blaze:

Soros in Q2 bought a put on 1,248,643 SPY units (“SPY,” also known as “SPDR” or “spiders,” is an abbreviation for a Standard & Poor’s depositary receipt. “Each share of spider contains one-tenth of the S&P index and trades at roughly one-tenth of the dollar-value level of the S&P 500,” Investopedia explains).


Okay, so what does this matter?

Well, as mentioned in the above, a “put” is is basically a bearish or — as Roche puts it — a “downward” bet.

“It appears that Soros has placed a large bet through S&P 500 puts, basically giving him the right, but not the obligation, to sell them in the future,” she writes.

Translation: If the S&P 500 and/or the exchange traded fund which tracks the S&P tanks, Soros will profit — and he’ll profit big.

However, recall that the “man who broke the bank of England” also purchased a large amount of stock in Apple. So maybe he’s just be hedging.

Lastly, keep in mind Roche’s final thought: “13F filings come 45 days after the end of the quarter.  Fund managers only have to disclose their long equity holdings in these 13Fs. We don’t know what he’s shorting.”

In short, Soros’ “put” could be something ingenious or it could be him acting on a hunch.


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