JP Morgan… This morning announced they had a boo boo. A bad trade. Not a rogue trader, but a bad trade.
They are talking 2 billion.. That to me means by the time the smoke clears it will be more like 6 to 8..
What does this mean?
Well, it could be the push to have the Stock market break below its recent trading range. Possible to have the Dow falter and go down below 12,600. Possibly have the S&P drop to 1300..
Buy S&P 1300 puts for 1200 bucks. That would hedge any long positions you have in stocks. One put should cover 125K dollar worth of stock longs. Double check that to be sure, but my math worked out to that.
This could cause commodities to sell off out of sympathy . If guys have to raise cash, they line every one up and shoot them.
CER
