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$175,000,000 Option Trade to end all option trades

Cellblock2429

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I don't have the equity to sell 19,000 contracts, but I might do one just for the heck of it.
The Option pays $91.20 as per the market close 1/14/2019. $91.20 x 100 shares (1 contract) = $9,120.00 premimum. The In the Money odds are 27% which is a bit higher than my comfort level - But what the hey.
Doing a Buffett? Bet on S&P 500 causes flap on options market
NEW YORK (Reuters) - An anonymous trader caused a stir in the U.S. equity options market on Monday with a massive bet that recalled Warren Buffett's famous wager on global stocks more than a decade ago.

The trader sold 19,000 put options on the S&P 500 Index (.SPX) obligating him or her to buy the market benchmark at 2,100 on Dec. 18, 2020, data from New York-based options analytics firm Trade alert showed.

As long as the index doesn't drop more than 22 percent from its current level of 2,582 by that date, the bet will earn the trader roughly $175 million in premiums.
WWWD
upload_2019-1-15_8-23-45.png
 

william the wie

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I'll stick with my 15 cash cows and yes that is the total number of issues that meet my criteria quite possibly in the entire world
 

Pavel Svinchnik

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I don't have the equity to sell 19,000 contracts, but I might do one just for the heck of it.
The Option pays $91.20 as per the market close 1/14/2019. $91.20 x 100 shares (1 contract) = $9,120.00 premimum. The In the Money odds are 27% which is a bit higher than my comfort level - But what the hey.
Doing a Buffett? Bet on S&P 500 causes flap on options market
NEW YORK (Reuters) - An anonymous trader caused a stir in the U.S. equity options market on Monday with a massive bet that recalled Warren Buffett's famous wager on global stocks more than a decade ago.

The trader sold 19,000 put options on the S&P 500 Index (.SPX) obligating him or her to buy the market benchmark at 2,100 on Dec. 18, 2020, data from New York-based options analytics firm Trade alert showed.

As long as the index doesn't drop more than 22 percent from its current level of 2,582 by that date, the bet will earn the trader roughly $175 million in premiums.
WWWD
View attachment 240238

From what you say, this is a European style option, which can only be exercised on the stated date of 12/18/2020. If so, the market could crash below the strike price in December of 2019 but the option seller wouldn't be obligated to sell at that point. Seems like a real long shot.

Paul
 
OP
Cellblock2429

Cellblock2429

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I'll stick with my 15 cash cows and yes that is the total number of issues that meet my criteria quite possibly in the entire world
/----/ From what I saw on the symbols you posted, the stock have lower highs and lower lows which outpace the dividends paid. If your portfolio is higher in Dec than it was in Jan without you putting mo money in, then fine.
 

danielpalos

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Picaro

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With Forex the movements are so small the commissions eat up profits and result in small losses most of the time. It takes a rare occurrence to move it much, like a war breaking out or something, to provide any volatility worth the risk; it's mainly for banks and big multi-nationals who have huge cash flows to hedge and protect earnings and reduce exchange losses. No point in speculating in that market when you have the CME and all kinds of other more lucrative gambles there. People like Soros have big cash reserves to induce movements with, plus he deals in crap currencies a lot, so it pays for him to run pump and dump and other tactics on Forex boards.
 

danielpalos

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i don't mind getting into options.

maybe we can find nice girls who are willing to be friends and discuss straddling options with us.

strangling options, if she likes it rough.
 

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