Doug Kass Is Short SPDRs With Call Options As Hedge (CNBC 4/28/2011), SPY Chart Inflection Point

Doug Kass was on CNBC's Fast Money last week (4/28/2011) and said he was shorting SPDRs ($SPY) with out-of-the-money call options as a hedge. Is that what the out-of-the-money XLI June $40 calls were doing last week? Or was the action betting on a test of the 2007 high ($42) before June expiration (6/17/2011). 200,000 contracts were opened in two days. XLI is the industrials ETF.

With the recent rapid sell off in the U.S. Dollar, Kass mentioned that a currency problem was "one of the forces behind the 1987 crash". He believes high gas prices and depreciating home values are not helping the consumer.

If I remember correctly, Doug Kass was on Kudlow in late 2006 and early 2007 warning about a recession coming due to housing. I found a Kudlow and Company clip from 11/27/2006 featuring Doug Kass and embedded it below. He was in the same camp as Gary Shilling (see pt. 1) during that time period, and Shilling is also bearish today! Read: Gary Shilling – Five Things that can Derail the Recovery (Advisor Perspectives h/t PragCap). Are we repeating 2007?