Short Squeeze Today?
I just bought a few SPY call options to play a potential short-squeeze rally today. This is only for fun, and my portfolio remains dramatically short overall.
The market is very over-sold at the moment, and every trader “knows” that we are going down some more. So, this looks like a good time to fade the crowd. Also, don’t forget that the quarter is not over, and while the big funds cannot take stocks up here, they will bid underneath and that will discourage shorts.
With both oil and bonds up this morning, stocks should be falling, but they are not. That means the big funds are probably at work.
My trade was at 10:30am, and I bought the July $129 SPY calls at $2.56.
June 27th, 2008 at 11:59 am
Calls? Matt, you traitor!
Did you see the VIX is under 24? Plenty of downside (and probably some panic) to go in the short term.
June 27th, 2008 at 1:04 pm
Hi Crash,
Yes, plenty more room for panic here. Especially if the DJIA headlines bring a rush of selling from the public.
Matt
June 27th, 2008 at 2:32 pm
Commercials short the large contract as of Tuesday.
June 27th, 2008 at 3:07 pm
Hi Timer,
Which contract are you referring to? The S&P?
Matt
June 27th, 2008 at 3:10 pm
Yes, the S&P.
June 27th, 2008 at 3:52 pm
Timer,
Yep, I see what you mean. Looks like there was a pretty radical shift in the last batch of data. Very ominous…
Matt