$4.5 billion options bet on a catastrophe within 4 weeks

DocProc

Sunday, August 26, 2007

An anonymous investor has placed a bet on an index of Europe's top 50 stocks falling by a third by the end of September, as world equity markets plunged for a third day and volatility hit a three-year high.

This is an enormous and dangerous stock option activity. If it goes right, the guy makes about $2 Billion. If he's wrong, his out of pocket costs for buying these options will exceed $700 Million!!! The entity who sold these contracts can only make money if the stock market totally crashes by the third week in September.

Bear in mind that the last time anyone conducted such large and unusual stock option trades (like this one) was in the weeks before the attacks of September 11.

Read more on this at

http://mparent7777-2.blogspot.com/2007/08/45b-bet-on-another-911-within-4-weeks.html

DocProc

The following also sounds a bit scary:

http://mparent7777-2.blogspot.com/2007/08/fed-something-big-is-going-to-happen.html

Browntoa

reads like conspiracy theory stuff, no disrespect but it's all rumour, how can they know about that option..and I suspect anyone making that sort of punt would hide it in a multitude of smaller holdings rather than one big trade

Jonbvn

ROFLMAO,

I think we really have to question the veracity of information provided in personal blogs.

DocProc

I agree. It does sound like scaremongering and conspiracy stuff.

We all have to make of it what we will.

However, since you are a MSE Forum Moderator, I'd just like to say I didn't write this stuff. I'm only drawing attention to it and also importantly, giving my source links.



The posts on the following site seems to offer explanations:

http://www.tickerforum.org/cgi-ticker/akcs-www?post=4669&page=9

zaphod

So ultimately if you didn't buy gold a few years back, then you are stuffed (to some degree)?

Browntoa

not a moderator, just a board guide

posting under my "sceptic" hat here

that chinese scenario has been floating around for ages..

a global recession on that scale would hit their exports big time

purch

The entity who sold these contracts can only make money if the stock market totally crashes by the third week in September.

.......

If you are going to spread gossip at least get the facts right...

The unknown entity BOUGHT these contracts...he didn't sell anything.

Stavros_3

Biggest laugh since Del-boy felll throuigh the bar hatch

dipsomaniac

this post doesn't deserve thread space as it serves no purpose whatsoever.

StevieJ

DocProc wrote: »

Sunday, August 26, 2007

Bear in mind that the last time anyone conducted such large and unusual stock option trades (like this one) was in the weeks before the attacks of September 11.

Urban Myth.