Karl Denninger:

That's a snapshot of today's volume for June GE $2.50 PUTs.

That's over 52,000 contracts traded today, controlling 5.2 million shares. They were purchased for about 30 cents, which means that the price has to be under $2.20 for them to go "in the money". This is a bankruptcy bet on General Electric by the third week of June. That's right - General Electric.

According to CNBC, "GE's average daily options volume was matched Tuesday morning in the first two hours of trading alone, as more than 300,000 contracts changed hands."

Here's the Bloomberg story on this. Yesterday, analysts on Bloomberg stated that GE needed "billions in capital" in order to stay alive. One analysts noted that GE Capital faces $21 - $60 billion of credit losses and writedowns over the next few years from commercial real estate properties and debt, credit cards, equipment leasing, etc. Watch the video. In addition to the hidden bailout of GE, there will be a massive handout from the government's very visible hand. Thanks to David Updegrove for the tip.