$4.5 billion Stock Market options bet on
catastrophe within four weeks
August 27, 2007
The two sales are being referred to by market
traders as "bin Laden trades" because only an event on the scale
of 9-11 could make these short-sell options valuable. 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. 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. THEORIES: The following theories are
being discussed widely within the stock and options markets today regarding
the enormous and very unusual activity reported above and two stories below.
Those theories are: 1) A massive terrorist attack is going to take place
before Sept. 21 to tank the markets, OR; 2) China, reeling over losing $10
Billion in bad loans to the sub-prime mortgage collapse presently taking
place, is going to dump US currency and tank all of Capitalism with a
Communist financial revolution. Either scenario is bad and the clock is
ticking. The drop-dead date of these contracts is September 21. Whatever is
going to happen MUST take place between now and then or the folks involved
in these contracts will lose over $1 billion for having engaged in this
activity.
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