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Bet against rate hike paid off big
You couldn't get away with this in Vegas. When everyone was wringing their hands before the Federal Reserve's announcement yesterday, someone placed a huge bet that the central bank would not raise interest rates. At 1:03 p.m. our Heat Seeker system detected a huge bullish vertical spread in the iShares 20+ Year Treasury Bond Fund, with 52,000 October 121 calls bought for $1.07 and the same number of October 124 calls sold for $0.41. Because each option represents 100 shares, that $0.66 cost translated to a $3.43 million investment. (See our Education section) TLT was trading at $118.82 at the time. About 1:15 p.m. ... (full story)