$4.5 billion options bet on a catastrophe within 4 weeks

Browntrout_2

anyone seen The Simpsons Movie

When the end game time comes to Springfield, all the church goers run out to the bar nextdoor, meanwhile all the bar patrons are running into the church!

Paul_Herring

StevieJ wrote: »

DocProc wrote:

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.

http://www.snopes.com/rumors/putcall.asp for those interested.

Stavros_3

No doubt the Tora Bora stock exchange was working overtime selling

DocProc

Dow drops 280.28 down to 13041.9

Looks like 12800 could be 'Here we come'.

dipsomaniac

Looks like 12800 could be 'Here we come'

did you place this bet?

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.

if this short position was taken it will be to cover a long position. the fund manager will be hedging there bets. i don't think anyone (few could afford to) would place a $700million one way bet.

DocProc

Dow Jones Industrial Average surges 247 points to 13,289, with all 30 Dow components ending in positive territory.

Volatility or wot!