Someone is betting billions on a catastrophe that the markets will crash and burn before September 2 Marked as: Rejected
Here's something that is snowballing through the internet today getting a lot of people spooked.
Since they now find the Fed's are going to their undergrounder bunker retreat for a weekend pow wow.
Anybody have a clue as to what these 'investors' are expecting?
The two sales are being referred to by market traders as "bin Laden trades" because only an event on the scale of 9-11 could make these short-sell 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.
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. http://www.google.com/search?hl=en&q=%244.5+billion+options+bet+on+catastrophe+within+four+weeks&btnG=Google+Searchhttp://nevernwo.blogspot.com/