someone bet $2 billion

[solidground]

that the stock market will crash by september 22..ive been thinking were gonna have a crash for the past few years within the next five yrs..just do a search for more articles since its not mainstream knowledge..similar abnormal trades with gold ect happened b4 9-11..

***BILLIONS IN PUT OPTIONS PURCHASED BETTING THAT THE MARKET WILL CRASH BY 9-21 BY 30-50%??!

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.

"$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 9-11

[kdogg]

Re: someone bet $2 billion

Out of curiousity, where did you find this information?

[solidground]

Re: someone bet $2 billion

.

[solidground]

Re: someone bet $2 billion

i get alot of info from prisonplanet which gets its articles from different news sources, independent and mostly mainstream media..This info i got from the group in my signature..im not saying a crash is gonna happen, just posted it for peoples opinions because someone did infact do this, im not an expert in economics at all i just found this interesting/shady.. and similar moves were made a fwe days before 9-11..wanted to see what you guys think..somone has to have some info to make a "bet" of that size.

[Prion]

Re: someone bet $2 billion

Leave the country. lol.

[supasaiyan99]

Re: someone bet $2 billion

Thanks for the info. Looks like my portfolio won't get any worst than it already is. The past two weeks has really screwed my portfolio. Oh well, we'll see what happens.

[kite]

Re: someone bet $2 billion

Thanks for the info. Looks like my portfolio won't get any worst than it already is. The past two weeks has really screwed my portfolio. Oh well, we'll see what happens.

Mine too, so much for retirement. I should just start stuffin some cash in the fire safe.

[a-bomb83]

Re: someone bet $2 billion

Leave the country. lol.

sounds good...where we goin? europe?

[daved150]

Re: someone bet $2 billion

thats why i perfer to stay broke!!! when your broke, you have no worries about such things, lol

[solidground]

Re: someone bet $2 billion

Either there will be another terrorist attack, or this is the explanation..

Analysts Dismiss Suspicious "New 9/11" Trades
Experts track down nature of transactions but concede they represent biggest gamble since last September
Paul Joseph Watson
Prison Planet
Friday, August 31, 2007


Market analysts from TheStreet.com have dismissed concerns about suspicious trades that seemed to indicate a major terror attack or other catastrophe was around the corner, leading to a stock market crash, but still concede that the transactions outstrip anything seen since last September.

As we reported on Monday, a mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style attack could take place within the next month.

The anonymous trader only stands to make money if the market crashes by a third to a half before September 21st, which is when the put options expire.

However, experts at TheStreet.com have dismissed the so-called "Bin Laden trades" as nothing more than nervous lenders trying to attract customers at a time when the market is fraught with apprehension following the sub prime mortgage crisis coupled with last week's stock downturn.

"Dan Perper, a Partner at Peak 6, one of the largest option market makers and proprietary trading firms, has confirmed that the trades are part of a "box-spread trade," report Steven Smith and Aaron L. Task.


"This was done as a package in which the box spread was used [as a] means of alternative financing at more attractive interest rates" explained Perper.

"Simply put, two parties agree to trade the box at a price that essentially splits the difference between current rates."

"For example, the rough numbers would be that given the September 700/1700 box must settle at a value of 1,000 -- it is currently trading around 997 -- that translates into a 5% interest rate."

"For the seller it is a way to borrow money at a slight discount to the prevailing rate, and for the buyer, it is a way to lend money at a low rate of return, but it's better than nothing at a time when others are scared and have painted themselves into a box (ha ha) because they have run out available funds."

Though seemingly skeptical that the trades could foreshadow outside events, as was the case with the put options placed against American and United Airliners in the days before 9/11, the analysts concede that the volume of the trades "completely outstrips anything seen last September."

They also note that, "The positions in question had option industry experts perplexed to come up with a rational explanation, which are far from the best or most efficient way to profit from what would be outlier events."