Leprechauns Heist Gold From Anglo Irish Bank ~ The Risk Averse Alert

Tuesday, September 07, 2010

Leprechauns Heist Gold From Anglo Irish Bank

Did you see this?


Huh? Was today's spike in put option buying a case of long equity hedging venturing to put a floor under the bid, or has some prospective disaster suddenly gained probability?

Enter Anglo Irish Bank. Apparently things in Europe are coming to a boil again.

Still, given today's slight pullback on relatively thin volume following last week's lift — this amidst technical reason to expect a brief period levitating — and with September options expiration but eight trading days away ... well, today's surge in put option buying probably bought as much cheap insurance as might be needed for five or so days more levitating, as well as prepare for what appears to be a nasty storm blowing in from the Emerald Island.

OEX 5-min

Whether some further lift higher lies ahead in levitation or something else leaving intact last Friday's high is no more clearer today. Which ever way the wind blows we probably are some days from the big show down hard.

Fast Money
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