Trader Spent $50 Million on Options Betting on S&P 500 Rally
- The wager involves three trades on SPY ETF call spreads
- The contracts could be $136 million at maximum: Susquehanna
This article is for subscribers only.
One trader just took on a massive bet that U.S. stocks will rally into the end of 2021.
The flurry of trades with the SPDR S&P 500 ETF Trust (SPY) -- which took place between 10:34 a.m. and 10:41 a.m. New York time -- involved call spreads maturing in each of the next three months. The total cost was about $50 million. Should all the contracts be in the money by their respective expiration dates, they would be worth $136 million -- for a profit of roughly 70%, according to an estimate from Chris Murphy, co-head of derivatives strategy at Susquehanna.