Keyword: putoptions

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  • $1 Billion in Risky Stock Market Transactions Similar to Pre-9/11 Activity

    08/31/2007 1:13:19 PM PDT · by mojito · 14 replies · 1,008+ views
    Weasel Zippers ^ | 8/30/2007 | W Zip
    In the weeks preceding the 2001 attacks on America, there were very significant financial warning signs that something big – and bad – could be about to happen. Huge surges in purchases of “put options” on stocks of United Airlines and American Airlines, the two airlines used in the attacks, and “put options” on Merrill Lynch & Co., and Morgan Stanley, stocks of two financial services companies hurt by the attack were noted. Put options are essentially “bets” that a stock or stock index will drop on or before a certain date; the larger the drop, the bigger the gain...