Some Guys Have All The Fun...;0)
Posted on 09/20/2007 9:49:02 PM PDT by tlb
THEY DID IT AGAIN. . . . ANOTHER HUGE SALE OF OPTION CONTRACTS ON $4.5 BILLION WORTH OF STOCKS BETTING THE MARKET WILL LOSE 30%-50% OF ITS VALUE IN FOUR WEEKS!
There are 65,000 contracts @ $750.00 for the SPX 700 calls for open interest. That controls 6.5 million shares at $750 = $4.5 Billion. Not a single trade . But quite a bit of $$ on a contract that is 700 points away from current value. No one would buy that deep in the money calls. No reason to. So if they were sold looks like someone betting on massive dislocation. Lots of very strange option activity that I haven't seen before. I've been doing this about 25 years.
The entity or individual offering these sales can only make money if the market drops 30%-50% within the next four weeks. If the market does not drop, the entity or individual involved stands to lose over $1 billion just for engaging in these contracts!
Clearly, someone knows something big is going to happen BEFORE the options expire on Sept. 21.
(Excerpt) Read more at liveleak.com ...
Dispelling the 'Bin Laden' Options Trades
http://www.thestreet.com/s/terror-trade-street-abuzz-with-bin-laden-options-trades/newsanalysis/optionsfutures/10377063.html?puc=_tscfoc&
Thanks for the reminder. I was wondering when Black Friday was coming.
Go Go Magic Depression.
http://www.fool.com/investing/international/2007/09/20/whyd-foreign-stocks-go-up-so-much.aspx
http://www.haaretz.com/hasen/spages/905861.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEPu8xy.o9i4&refer=home
bookmark
The entity or individual offering these sales can only make money if the market drops 30%-50% within the next four weeks.<<
Absolutely incorrect. If they sell short those calls and the market drops 1% in value they will make money. These are call options not put options. They are in the money but every point the market falls they are one point less in the money which means a profit to anyone selling now.
See ya here tomorrow night....hang on!
By The Way, I’d like to be the first to lament over the total loss of my 401K, even before it actually happens, I hope to be able to request certificates of all the stuff that is now worthless so I can wallpaper my bathroom with it, like my great uncle Wolf did in the 30s. He told me this story about the stockmarket and banks...
This was written on Aug 24. Sounds like the hurricane forecastors are wrong again since there is less than 24 hrs left.
b
Aren’t they too late to recover this? Even if they did something catastrophic tomorrow wouldn’t the market suspend trading and shut down?
The night is young.
The September SPX options settle at the opening price tomorrow, so unless something huge happens within the next seven hours they will expire worthless. Nothing that happens after the opening bell tomorrow will affect the settlement price. Take it from me. I’m the proud owner of more than a few SPX 1400 puts that expire tomorrow.
Some Guys Have All The Fun...;0)
Ping tag for whichever way this blows
“If the market does not drop, the entity or individual involved stands to lose over $1 billion just for engaging in these contracts!”
That assumes that it is just one entity or individual. In all likelihood it is many. I would guess George Soros and Warren Buffett are among them though.
not likely ... ping
So far this is BS...
Index Value: 13,837.50
Trade Time: 9:31AM ET
Change: 70.80 (0.51%)
http://finance.yahoo.com/q?s=%5EDJI
Well, we only have only have 6 and 1/2 hours for the market to tank atleast 30% or those options expire worthless.
The market is up over 60 points, there are no economic reports scheduled today and it is entirely possible that the Dow will close within 150 points of its record.
This entire hysteria is based upon the idea that the entire $4.5 billion trade was from one individual or group. In terms of futures trading this is an extremely small sum of money and a month ago there were plenty of doom and gloomers talking about an imminent plunge.
Just wait. It’s black friday.
Go Go magic depression!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.