“Black Swan” Bets Explode As Brexit Looms
by Tyler Durden
ZeroHedge.com
Jun 22, 2016
Bets are starting to pile up in distant corners of the U.S. options market that tomorrow’s U.K. referendum will ignite massive losses in stocks.
In the last four days, open interest for deep out of the money puts on the S&P 500 that mature on Friday have increased 1100%.
As Bloomberg reports, “It’s a black swan type of put,” said Steve Sosnick of Timber Hill LLC. “It’s very possible there will be an extreme result, and people like to have insurance against a low-probability, high-outcome event.”
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