Armageddon Put Trade Up Over 500% For The Week, More Room To Go And More Trades To Set Up!
As those who have been reading me for a while know, I have been crowing about sovereing debt default leading to a European bank collapse, causing global contagion for some time. For those who haven't, reference last years posts in the Pan-Europan Sovereign Debt Crisisseries, or The Anatomy Of A European Bank Run: Look At The Banking Situation BEFORE The Run Occurs! for something a little more recent. Early last week, I put one a trade in the US options markets to capitalize on what I saw as the European tipping point, Game Over For The European Ponzi Scheme? Monetizing Pan-European Sophisticated Ignorance Via US Options, Part 1 For Retail and Professional Realists (8/2/2011). I then updated said post with the results of said option trade, a full 260% return in 48 hours - Timely Trading Tips For 8/5/2011 as well as additional illustrative trades for blog subscribers as well as plenty of educational material for those that don't subscribe. That was last week.
Well, another week, another story. The very same armageddon trade is now up over 500%, and I believe it still has plenty to run. Athough we may be overdue for a snapback rally, the macro outlook AND the fundamentals are downright disgusting, and to be quite frank they have been since 1st quarter of 2009. Incessant bubble blowing by the global central planning cartel (the Fed, ECB, BOJ & Chinese government) have succeeded in convincing many an investor that bubbles blowing = economic growth. My dear friends, it simply does not. All you are doing by blowing bubbles is pulling/borrowing economic growth from future periods, and now its time to pay the full debt service (itnerest plus borrowed economic capital) back in spades! Reference Do Black Swans Really Matter? Not As Much as ...,
Click to enlarge!
We have also just released (this morning before the trading session) additional trade setups designed to take advantage of the recent US debt downgrade, see Trading the US Debt Rating Downgrade the…
Update: Minutes afte typing this, the same put is Asked just under $48!!! If/once this option goes "in the money", the party will be just getting started!
Oh, and I will soon be updating on that big European bank(run) just waiting to happen...
- Reggie Middleton's blog
- Login or register to post comments
- Printer-friendly version
- Send to friend
on Mon, 08/08/2011 - 18:18
#1539691
Watch out for more bubble blowing. We all know the ponzi is a PONZI, but that doesn't mean the money-printers will stop trying to keep it afloat, making for a volatile race to the bottom. Snap-backs and bubble blowing can lose you a bunch of cash, reference the "bears/shorts getting their face smashed in, cut up, put through the meat grinder" for two years since the 2009 lows. Wathc out, stay nimble.
on Mon, 08/08/2011 - 18:06
#1539650
Annoying fucking pop up ads blocking text and chart.
on Mon, 08/08/2011 - 18:37
#1539757
I dunno,, I'm using IE9 and only (free) MSFT Security Essentials.. have pop-up blocker on and medium security to allow some Active X. seems to work pretty well to keep the ads and BS out.
on Mon, 08/08/2011 - 18:22
#1539703
Reduce the zoom level on your browser. My version of IE has it in the lower right corner.
on Mon, 08/08/2011 - 18:05
#1539646
Way to go Reggie! You're a warrior on the front lines.
If I was in the mood for excitement I'd be joining you in the trade trenches.
Right now I'm comfy and just want peace and stability and to watch the world unfold.
I'm watching for a French Bank to fall -- it's like reading a mystery whodunit.
on Mon, 08/08/2011 - 17:28
#1539498
I got one.. GLD Sept 17th 1990 call bought two weeks ago at .07 .. up 329% in two weeks.
It's a shame it was only a shot in the dark and only 5 contracts.
How long should I keep it?
on Mon, 08/08/2011 - 17:06
#1539409
Welcome to GD #2; hopefully no blood in the streets before Christmas; hate to live under martial law during the holidays.
on Mon, 08/08/2011 - 16:24
#1539101
Reggie, you're the best. Just love it when you and Max get together!
More Armageddon and spare them none!
on Mon, 08/08/2011 - 16:18
#1539022
Havana cigars for the king of the put. You should give lessons to Tiger, his putting is way off!
on Mon, 08/08/2011 - 18:16
#1539681
Does anyone else think it is funny that we should crave socialist cigars to celebrate the death of capitalism?
on Mon, 08/08/2011 - 16:22
#1539079
Ofuckhead too, quadruple bogeyed on 18, late for speech.......