By Daily Crux Editor Justin Brill:
A word of caution for the bulls out there... Options traders are worried about the rally.
The cost to purchase one-year protective options in the S&P 500 is now 22% more than the cost of one-month options.
This is the biggest difference in over 10 years. In fact, the last time the gap was this large was just months before the S&P 500 began a 49% decline in March 2000, as the Internet bubble crashed.
These numbers don't guarantee a big decline in stock prices from here, but they do mean investors should be cautious going forward...
Read full article...
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