They made millions by intentionally loading up on OTMs? Or did they just let existing positions go to settlement and get a nice surprise? AZD
The two winners were short atm and long 20x in otm gamma. The losers were massively leveraged in atm short gamma.
when you say they went into debt, you mean they blow up their account and now owes the brokerage? Assume those are all professional option traders.
I think Atticus means that they had to pay up big time. If they were completely naked, they could actually have gone in the hole with the incredible change overnight. Those with "credit" spreads just lost all they margined unless they were way, way, OTM.
Several 100-1 SPX plays out there. All those strikes around or slightly above 1200 were trading under a buck on yesterdays lows.
Are are one of the guys who made millions? Pardon my ignorance but what does SET stand for? I didn't make millions today but percentage wise I am VERY happy. I was legging out of a major double diagonal (my personal version), and was left with a boatload of OCT SPY OTM calls for Fri am. Fuckin pandemonium at 9:30am. Back to the Captain and Coke. I salute you traders who survived this historic week.
theres quite a few on the list: Social Entropy Theory? Simulated Emergency Test? Similarity Enhanced Transfer? Sacrificial Elite Trader?
SET is short for settlement. Index expiration SET is a very secret, special settlement though for it has little to do with the index price. SET is derived from the opening print in each index componant. If IBM's opening print is time stamped at 9:30:0001 that then is IMB's SET contribution. The halted POS might not first trade until 9:41 and it's not until then that POS factors in. SET can and will differ from the commonly recognized index value by several points a few times a year. Today though was a once a lifetime.....
Today was not once in a lifetime, but it was a huge settlement. Nov 05 was a big one too 53 points if I recall correctly from the previous nights close. Aug 07 too was a nasty one. Shocked that one who trades the SPX is not aWARE OF SETTLEMENT