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Trader Spent $50 Million on Options Betting on S&P 500 Rally

  • The wager involves three trades on SPY ETF call spreads
  • The contracts could be $136 million at maximum: Susquehanna
Updated on

One trader just took on a massive bet that U.S. stocks will rally into the end of 2021.

The flurry of trades with the SPDR S&P 500 ETF Trust (SPY) -- which took place between 10:34 a.m. and 10:41 a.m. New York time -- involved call spreads maturing in each of the next three months. The total cost was about $50 million. Should all the contracts be in the money by their respective expiration dates, they would be worth $136 million -- for a profit of roughly 70%, according to an estimate from Chris Murphy, co-head of derivatives strategy at Susquehanna.