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HUGE event happening in September - Someone bought a TON of calls!
08-26-2007, 01:43 AM,
HUGE event happening in September - Someone bought a TON of calls!
Holy shit guys... something big's afoot!

someone bought 10k contracts on every strike.
Quote:$1.78 Billion Bet that Stock Markets will crash by mid-September
Anonymous Stock Trader ("Bob" ??) 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.
08-26-2007, 04:34 AM,
HUGE event happening in September - Someone bought a TON of calls!

That is not a **CONSPIRACY** site either. It is a tinfoil-hat free site, well it was tinfoil-hat free site until they started discussing the prospect of wearing them.

As you read further on you'll see it wasn't a huge mistake as first predicted.

I think this comment sums it up the best:

Quote:Vegasradar-It's not a 1B hedge but a 1Million hedge. Kind of like buying an assload of lottery tickets thinking you'll beat the odds. But if you knew what the numbers were already then there is little to no risk.
08-26-2007, 04:46 AM,
HUGE event happening in September - Someone bought a TON of calls!
It might not be such a big deal, just the numbers seem high to the unitinitated, and people like to skew the data to fit their pet theories. Most likely it's just a big buyer planning to roll it monthly. Fx is a safer market

08-26-2007, 04:55 AM,
HUGE event happening in September - Someone bought a TON of calls!
more info! those who read my other thread which deals with carry trade will understand what's going on with these mysterious trades.

Mystery trader bets market will crash by a third Renée Schultes
Carry trade unwinds as yen hits one-year high

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.
Related Stories

Managers cheer the dollar’s decline 23 Apr 2007
Market is living for the momentum 05 Mar 2007
US hit by investment outflow 16 Feb 2007
Traders miss out on dollar slide 30 Nov 2006

The mystery investor has bought put option contracts on the DJ Eurostoxx 50 index that will result in a profit if it plunges to 2,800 or below by the end of September. Based on the 2,800 strike price, the position covers a notional €6.9bn, and potentially even more using a market price of about 4,100 when the trades were done on Tuesday and Wednesday.

The identity of the investor is unknown but market sources speculated it was either a large hedge fund hedging itself against deepening losses, or a long-only fund manager pressing the panic button to protect its gains.

The investor has bought a total of 245,000 put options on the index. The September put option with a 2,800 strike was the most popular DJ Eurostoxx 50 contract yesterday, according to data from Bloomberg.

Volatility in European equity markets has risen sharply this week as investors cut back on the amount of risk they are taking. The VSTOXX index, which measures the volatility of the DJ Eurostoxx 50 index, hit 34 this morning, which is more than double its three-year average.

Similarly the volatility of the US stock market was trading at almost three times its three-year average, hitting 30 yesterday.

However, both indices continue to trade below their 2002 highs.

European stock markets were trading down almost 3% at by 13:00 GMT today, after large drops in Asia and Australia overnight. The Australian market fell 300 points at one stage when futures trading was suspended for over an hour and traders were forced to hedge positions by selling physical stocks rather than futures.

An analyst at Goldman Sachs JB Were in Australia wrote: "I think I shall remember this day as the day that I saw the market go to hell, look into the abyss - didn't like what it looked like and then came screaming back up as far away from there as it could get. ... It was a truly spooky day and I’ve seen a lot over the last 20 years but today will be one that anyone who saw it will never forget. But this is what market bottoms are made out of."

The rise in volatility and risk aversion has also contributed to a sharp appreciation in the Japanese yen, which has been used to finance the so-called carry trade, where investors borrow in a low-yielding currency to invest in one with a higher-yield.

Analysts' belief that the yen carry trade is set for a major unwinding has intensified today as the Japanese currency continued to rally in morning trade.

The yen strengthened today as it broke through several psychological barriers. The yen hit 113.60 against the dollar by 12:35 GMT, the first time in more than a year it has dropped below 114. The yen was substantially up against the dollar from yesterday, when it traded at above 116.

Simon Derrick, head of currency research at Bank of New York Mellon, said: "With any hope of even a brief bounce emerging in the yen crosses evaporating in the fierce glare of another horrible close in New York, it is clear that the vicious, self-reinforcing, downward spiral we were worrying about is already firmly established."
08-26-2007, 09:08 AM,
HUGE event happening in September - Someone bought a TON of calls!
In Europe too:

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