Did anyone know what happened to the stock market? Based on briefing.com In Play, this is what this was reported at 14:38 ET:
But, I'm into a spread yesterday for S&P 500 (SPX). S&P 500 dived from 1,576 to 1,546 and I'm into this with the weekly options 1,555/1,570 Bull Put Spread. My maximum loss was supposed to be $6,600 and I converted it to a Iron Condor by having another 1,555/1,570 Bear Call Spread to offset the loss towards the last minute. The Bear Call Spread gave me $1,750, making my SPX loss limited to $4,850 (which is still quite high for me!!).
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Floor Talk: This afternoon's abrupt sell-off
The markets rolled over about a half hour ago, with the decline notable for the sharp sell-off in big-cap technology stocks. While there was some initial confusion as to whether something specific sparked it, it appears the following things could account for it: 1) a tier-1 firm came out with cautious intraday comments on the tech sector; 2) a different tier-1 firm came out negative on BIDU, which took down a host of momentum tech stocks; and 3) ECB governor Weber stated that, although the ECB had temporarily paused its rate hikes, in his opinion the ECB may need to raise rates to a "restrictive" level... Dow lost over 100 points in a half hour, Nasdaq lost over 30 points.
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Baidu dived from 359 to 301, luckily I'm not in this. So did many technology stocks (like GOOG, RIMM, AAPL, ISRG, etc etc) and investment stocks (like GS etc). Look at the index chart below and focus at the 'dive' portion from 2pm ET onwards.
But, I'm into a spread yesterday for S&P 500 (SPX). S&P 500 dived from 1,576 to 1,546 and I'm into this with the weekly options 1,555/1,570 Bull Put Spread. My maximum loss was supposed to be $6,600 and I converted it to a Iron Condor by having another 1,555/1,570 Bear Call Spread to offset the loss towards the last minute. The Bear Call Spread gave me $1,750, making my SPX loss limited to $4,850 (which is still quite high for me!!). Market Crash!
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