“Black Swan” Bets Explode As Brexit Looms

Wednesday, June 22, 2016
By Paul Martin

by Tyler Durden
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.”

The Rest…HERE

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