View Full Version : Billions In Put Options Purchased Betting That The
solve_et_coagula
26-08-2007, 11:40 PM
BILLIONS IN PUT OPTIONS PURCHASED BETTING THAT THE MARKET WILL CRASH BY 9-21
http://www.rumormillnews.com/cgi-bin/forum.cgi?read=108416
revolutionary_jam
26-08-2007, 11:46 PM
looks a bit like doomsday scare mongering to me, but who knows
chris
27-08-2007, 02:02 AM
If it crashes then how would you collect your money?
soglad
27-08-2007, 02:05 AM
Foolish people shouldn't put all their worth on paper. Or anything. The world will always cater for those who realize this.
jaanus
27-08-2007, 02:25 AM
This is crazy. There were "mysterious" deals prior to 9/11 (they gained $50 million by doing the same thing with the airline companies involved in 9/11).
These bets, they have just made, are just unbelievable. If the market goes down by at least 30% they will gain Billions, otherwise they would lose Billions.
The odds of a market falling that much are extremely slim *UNLESS* you know something big is about to happen.
What makes things more interesting, is that it is ILLEGAL to reveal the entity behind these transactions.
Billions were not only bet in US but also in EU. Check this out:
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. http://www.financialnews-us.com/?page=ushome&contentid=2448565379 (http://www.financialnews-us.com/?page=ushome&contentid=2448565379)
Happy digging...more information...savings...bunker...grave...whatever
jaanus
27-08-2007, 02:32 AM
If it crashes then how would you collect your money?
They don't need to collect anything, they already have it. The thing is that if the time expires and the market does not crash they have to pay it back plus transaction costs (interest). If the market crashes, they have to pay back less.
It is similar to a short term loan with very high interest rates.
teslafire
27-08-2007, 03:40 AM
If the market doesn't crash, the only loss will be the cost of the transactions.
Seems more like a scare tactic...but then could that be enough to start geniune panic in the market?
I wouldn't be surprised if it were China.
jaanus
27-08-2007, 11:19 AM
If the market doesn't crash, the only loss will be the cost of the transactions.
Yeah it costs only a few Billions just for the transactions cost. Nothing to worry here mate, probably just a business strategy. /sarcasm_off