US headed for a ‘pretty severe’ recession, investor says… Wall Street trader spends $9M on VIX call spreads, bracing for a September selloff.

Sharing is Caring!

US headed for a ‘pretty severe’ recession, investor says
byu/Perfect_Alarm_2141 ineconomicCollapse


See also  Repo failures surged 50%, swap spreads hit record lows. Credit card delinquency rates are reaching 2008's levels. When is the rug pull coming?

New Goldman Sachs Layoffs Surge Past 1,000

Options Trader Spends $9 Million Betting on September Volatility Spike

(Bloomberg) — While many traders on Wall Street had a foot out the door for the long Labor Day weekend, at least one investor was buying protection against a September selloff.

An options trader or traders bought call spreads on the Cboe Volatility Index — or VIX — expiring in September, spending upwards of $9 million to protect against a spike in the gauge of S&P 500 volatility past 22 from its current level of just over 15. A jump to that level would bring the VIX back to where it was Aug. 9, when the market was recovering from a sharp selloff.

See also  Warren Buffett Indicator hits 202%, signaling overvaluation; 61% chance of recession by January.

There are reasons for investors to be wary of stocks retreating. September has historically been weak for the S&P 500, and this year, with the US presidential election around the corner, the month could be especially fraught. A slew of economic data ahead of the Federal Reserve’s interest-rate decision on Sept. 18 may shift expectations on how much, and how fast, the central bank will ease monetary policy.


Views: 235

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.