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DJIA Drops 1500 Points With An Hour To Trade

Over 30 million option contracts traded with 1:15 left until S&P 500 closes. The SPY has passed 6.9 million contracts and Put/Call has exploded to 1.8:1, approaching the extreme levels I spoke of earlier. VIX up 57% to $27.06. The backwardation I spoke of is now 11 points! That’s one of the most extreme readings […]

By Jon Najarian · February 5, 2018

Over 30 million option contracts traded with 1:15 left until S&P 500 closes. The SPY has passed 6.9 million contracts and Put/Call has exploded to 1.8:1, approaching the extreme levels I spoke of earlier.

VIX up 57% to $27.06. The backwardation I spoke of is now 11 points! That’s one of the most extreme readings I’ve seen.

The likelihood that this goes to a 10% correction is possible, and more so with every headline that will say, “Dow Drops 1500 points”.

I still believe we will see a correction of 7% to 8% rather than a full 10%, but that will remain to be seen.