Beneath The Surface

While the box score shows little change today there was more of a story beneath the surface. Heavily shorted names, led by the REITs, exploded higher today. I would not be surprised if we find out that a fund blew up today.

I thought that today was the best chance for the bears to make their move if they were going to do it before expiration. As I mentioned yesterday, the bears might need to wait until after expiration to get at their honey. So why don't I cover my shorts and put them on at expiration? I see 20 points of potential upside and over 100 points of potential downside on the S&P 500. A large part of my bet is through June Puts so I can withstand a little squeezage. Have a good night.

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