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coffeedave
09-19-2007, 07:31 AM
$4.5 BILLION 'Bin Laden Trade' STOCK MARKET TO CRASH SEP 21?

Ouch hope this is not true
www.anomalicresearch.com... (Much alternative and suppressed information)

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

Posted By: RayelansMailbag
Date: Friday, 24 August 2007, 6:34 p.m.

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.

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 seen before.

adventuresome1
09-19-2007, 08:44 AM
Another excellent, informative article, Dave! Thanks! :) Should we all pool our money, and buy up all of the stocks in Iraq Banks and Companies that we can think of just to hedge our bets? lol. Whadda ya think?!

buck74
09-19-2007, 10:57 AM
guess its a good time to transfer all of your money to Warka, where it will be safe. :D

aares
09-19-2007, 11:39 AM
And why would I want to take out my savings in the bank?

removed account per user
09-19-2007, 11:41 AM
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 seen before.

Actually, when this news story came out in August... the company that did the options trade took a lot of heat, and they came forward and said it was part of a "box spread" trade. A trade that covers multiple scenarios, including a scenario of massive upside.

Anyway, whoever made the trade has already been looked at by the Feds. Nothing to see here...