Buy TLT via selling Jun 89 puts, TLT @96.3. Bonds have spiked up in price as the stock market falls. The put volatility for TLT is unusually high. 90 is a support area. I am already short TLT Jun 84 puts.
Yesterday's 998 point stock market decline is being blamed on someone entering a sell order for 16 billion instead of 16 million. Many of the trades from that time are being backed out. What a mess.
If someone was writing a spy novel, that kind of scheme would be a good ruse for manipulating the markets, especially with the knowledge that many of the trades will be backed out the next day. In the plot of the novel, it would be interesting to weave the story line about motivation. Straight cash would be a bit dull. A election in a major country adds to the intrigue. Perhaps I've read too many spy novels, but gosh, what a story it could make.
Long GLD, SPY, TLT
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