Tuesday, August 28, 2007

Someone is betting billions on a catastrophe that the markets will crash and burn before 9/21/07

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.
The fact that this latest activity
by a single entity gambles on a
complete collapse of the entire
market by the third week in
September, seems to indicate
someone knows something really
huge is in the works and they intend
to profit almost $2 Billion within the next four weeks from whatever happens! This is really worrisome."


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.


Financial News: Mystery Trader Bets Market Will Crash By Third

MarketTicker Forums Read Message in Breaking

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