Paper bought 20,000 GGB Sep 9-10 Bull Call Spread for $.28 (94.3 times usual volume) when stock was trading $8.10
Paper sold the 5189 BRY April 45 Calls and bought April 40 Puts for $1.10 credit (122 times usual volume) when stock was trading $45.12
Paper bought 1800 P March 12 Straddles for $2.25 (2.0 times usual volume) when stock was $11.62
Paper bought 1000 BID March 38 Calls for $1.35 when stock was trading $37.52
Paper bought 1975 NCT May 12.5 Calls for $.15

Paper bought 3500 VCI March 35 Calls for $.35 (33.7 times usual volume) when stock was trading $31.25
Paper bought 1300 AON March 60 Calls for $.70 (3.5 times usual volume) when stock was trading $59.38
Paper bought 2022 WEN March 6 Calls for $.05 (6.2 times usual volume) when stock was trading $5.69
Paper bought 1676 GSK April 47 Calls for $.45 (2.2 times usual volume) when stock was trading $45.49
Paper bought 628 RAI Jan 2014 40 Calls for $4.60 (2.5 times usual volume) when stock was trading $44.38

Bonds have been outperforming stocks for the past 30 years, but that’s about to change, warn experts. Bonds are not the safe haven that they used to be. Interest rates have been declining since the early 1980s but now we’re heading into a period of rising rates, which means that investing in the bond market will be a lot more challenging over the next few years.

Investors with stakes in long-term Treasuries are already feeling the pain. As the 10-year Treasury yield recently crept up to 2% from its record low of 1.4% last July. If the 10-year yield rises back to the level it was before the financial crisis (around 5%), bond funds could plunge 25. The threat of rising yields is especially worrisome for individual investors, who have poured more than $1 trillion into bond funds in the aftermath of the financial crisis, according to the Investment Company Institute. That trillion-dollar inflow has led to an overcrowded market. They’re invested in bonds for their perceived safety, so they’ll likely be extra sensitive to the price moves.

The risk is even more alarming when you consider valuations adding that the bond market looks similar to the overvaluation of the stock market at the height of the dotcom bubble, when the S&P 500 was trading at 30 times trailing earnings.

In my opinion its not a matter of what Bernanke specifically will say, but more a underlying fundamental result that will turn this 30 year bull market into negative territory. Sooner or later those interest have to come up from their artificial rates that have been kept low for helping the “recovering” of the economy.

—
Sven Van Tongeren
Sven@KeeneOnTheMarket.com

Paper sold 19,723 TSM April 17.5 Calls they were long and bought 39,446 TSM April 20 Calls for $.40 (33.8 times usual volume) when stock was trading $19.18
Paper sold 14,978 CHTP Sep 1 Puts for $.20 (596 times usual volume) when stock was trading $1.27
Paper bought 7500 DIN June 85 Calls and Sold June 65 Puts for $.25 debit (85.4 times usual volume) when stock was trading $75.20
Paper bought 1600 OCZ June 2 Calls for $.45 when stock was trading $1.88
Paper sold 3000 DISH April 36 Puts for $1.60 when stock was trading $36.22