Mike, Federal Reserve, San Francisco discussed on CNBC's Fast Money


Details. We're live with the NASDAQ in Times Square much more fast. Still ahead. Welcome back to bass money stocks reeling today after the Federal Reserve hiked interest rates in one trader made a more than twenty million dollar bet. A bear market could be around the corner. My cousin San Francisco at the details. Mike. I there are so on a newsy day like today where the S and P moved one and a half percent to the downside is probably not surprising that this fight or s and p five hundred ETF so well, above average football MMA traded about three point three million put contracts that's bursts, the two million that it might trade on an average day lately. And where I saw some interesting activity was a big purchase of the February two forty puts somebody paid five dollars for just under forty two thousand of those and that twenty plus million dollar premium spend might seem like a lot, but it happens to correspond to just about an even billion dollars notionally. So I think likely what's going on here is that somebody with at least a billion dollars worth of S and P five hundred exposure concerned about further declines in the market decided to spend a little bit over two percent of their total holdings to hedge against further. Declines in this case that would represent a decline of another six percent from the already depressed levels that we've seen over the course of the last thirty days or so interpret. I would say Mike's redesign. Exactly, right. Mike. That's fantastic. Because you're looking for protection of the downside. You get two percent. I mean think about the cost relative to what you're protecting. It makes so much sense. And I agree with how your vision of this. It's not necessarily negative. This is protection being bought. But of course, the flip side to that you can keep buying protection, and it can cost you a lot of money. You have to be a bit strategic with that. Right. Anyone in your hedges is going to be a drag. So it's a two percent drag on your portfolio in this particular situation, though, if you wanna protect that's what you have to pay it doesn't seem to terribly expensive. Yeah. Mike in terms of the options action right after the fed decision. I mean this happened right afterwards. And I'm wondering what sort of activity and flow. Did you see after the decision was released entering the state during the press conference? Yeah. You know? So it's interesting first of all going into it. I think there were a lot of market participants. Probably saw this. We saw some speculative call buying. I think some people were looking for maybe just hoping for slightly more bullish activity news coming out of this. But you know, generally speaking, and it wasn't just an SP, y you know, we saw above average volumes in a lot of the broad sector. ATF's XL league comes immediately to mind, which was already trading at fifty two week lows people are buying protection. Because I think what they're saying to themselves is, you know, we have some bad news pedic's yesterday with respect to Europe and China if that bleeds into the US economy, if you hold a lot of equities, and you wanna get some protection, that's what I think they're looking for and the triple cues is just one more to add to what makes talking about. But there was protection everywhere. XM me, you're talking about medals. My there's every every one of the major indices we were seeing that kind of protection being bought out there. All right, Mike. Thank you for the action. My Cohen San Francisco in for more options. Action. You can check out the full show. That's Friday five thirty PM eastern time up next final trade. Time for the final transfer round the Horne heats. I think these exchanges the place to be CBO, maybe Brian Kelly. Well, strong dollar is not gonna be that great for the emerging markets. You Sal, EM Basso? Oh, let's stay consistent. I said XL you the utility. So I'm going to stick with that X L U buyer, beware. If the market goes down, this one is not bulletproof dummy. It's a very important mad money coming up in in matter of thirty seconds Micron guy at the Mike saw snippets of that. Lilly all Lewin, and this was this was a feisty show that appeal to you, and the fact that you knew what going to the mattresses was tremendous tremendous. I'm with Pete except that I'm

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