DoubleLine Capital's Jeffrey Gundlach tells Reuters that his firm bought some five-month put options on the S&P 500 a couple of days ago after VIX fell to lowest since December 1993.
“This is like free money,” Jeffrey Gundlach said in phone interview with Reuters, noting that "we lost money the first day we put on the trade, but now we are doing great."
“We are in a seasonally weak period for stocks but more importantly, we think the VIX was really, really low. So the S&P puts are going long volatility”
"Now we wished we had done more," said Gundlach, the chief executive officer at DoubleLine, which oversees $110 billion in assets under management.
Gundlach said he still has exposure to gold and predicted gold prices would rise because "gold looks cheap compared to markets that have rallied a lot, including bitcoin and including Amazon."
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Additionally, Gundlach tweeted overnight about copper (and its bearish implications for Treasuries)…
"Copper/Gold ratio soaring to the high of the year!"…
"Not good news for the "1.50% 10 year" crowd. Neither is 10 year Bund holding above 50 bp."
So, it appears Gundlach is bearish stocks and bonds… which is the direction they both traded today.