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News :: International
BILLIONS IN PUT OPTIONS PURCHASED BETTING THAT THE MARKET WILL CRASH BY 9-21
26 Aug 2007
You can see why banks are running scared...they know the bottom can fall out at any moment. I'd suggest keeping minimal deposits in banks and holding on to cash.
Posted By: RayelansMailbag <Send E-Mail>
Date: Friday, 24 August 2007, 6:34 p.m.
ANOTHER HUGE SALE OF OPTION CONTRACTS
Date: Fri, 24 Aug 2007 19:43:25 GMT
Good Morning Everyone,
OTHER THAN THE EXPECTED FINANCIAL ANNOUNCEMENTS, ANYBODY HAVE A CLUE
AS TO WHAT THESE 'INVESTORS' ARE EXPECTING?
THEY DID IT AGAIN. . . . ANOTHER HUGE SALE OF OPTION CONTRACTS ON $4.5
BILLION WORTH OF STOCKS BETTING THE MARKET WILL LOSE 30%-50% OF ITS
VALUE IN FOUR WEEKS!
THIS SALE ON THE SPY.X AND THE ONE FROM YESTERDAY ON THE SPY.Y
(MENTIONED TWO STORIES BELOW) ARE BEING REFERRED-TO BY FOLKS IN THE
MARKET AS "BIN LADEN TRADES" BECAUSE ONLY AN ACT OF TERRORISM AKIN TO
9-11 (WITHIN THE NEXT FOUR WEEKS) COULD MAKE THESE 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. Lots of very strange option activity that I haven't
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.
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.
"$1.78 Billion Bet that Stock Markets will crash by third week in September
Anonymous Stock Trader Sells 10K Contracts on EVERY S&P/Y "Strike"
Shorts Stocks "in the money" effectively selling all his SPY holdings
for cash up front without pressuring the market downward
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.
Back then, they bought huge numbers of PUTS on airline stocks in the
same airlines whose planes were involved in the September 11 attacks.
Despite knowing who made these trades, the Securities and Exchange
Commission NEVER revealed who made the unusual trades and no one was
ever publicly identified as being responsible for the trades which made
upwards of $50 million when the attacks happened.
The fact that this latest activity by a single entity gambles on a
complete collapse of the entire market by the third week in September,
seems to indicate someone knows something really huge is in the works
and they intend to profit almost $2 Billion within the next four weeks
from whatever happens! This is really worrisome."
more here: link to http://www.tickerforum.org
This work is in the public domain