Put it this way, this is not the sign of a bottom or a young bull market…
Major hedge funds are reportedly buying, or have bought, massive amounts of Standard & Poor’s 500 index calls in the over-the-counter options market. The calls would increase in value if the index, now at about 1,664, rises to 1,725 by year’s end. The funds reportedly missed the stock market’s rally and are playing a vicious game of catch-up.
Though it is difficult, if not impossible, to penetrate the veil of secrecy that surrounds the OTC markets, evidence in the listed options market suggests investors are clamoring to buy bullish calls.
Desperation is hilarious, until it gets carried away. I’m glad my money isn’t being thrown at 1725 calls in a two-and-twenty vehicle right now.
re: the title of this post, yes I am fired up for The National’s new record this summer.