Guy loses $800 million selling BSC puts on the open!

Anyone hear any news about this, I just heard it on CNBC. That's why you dont sell naked puts, he deserves it. On a second note, when do you think Bear Sterns becomes a buy? I've been watching this stock for quite sometime looking to invest, never pulled the trigger, almost bought 3k shares off the open, and that was a good idea to balk on those LOL. Now I feel like this stock is trying to catch a falling knife, you may see a good bounce with a nice 15-20% gain next week, but the risk reward is terrible. Any other opinions on buying this for the short-term or long-term?

 

You completely butchered the story. He lost that money over the past year, not today.

 

i thougth the 800 mil was related to joe lewis and his losses

 

I would be comfortably short on BSC at 110, wish it came on the radar at that time.

 

short puts are no more risky than straight long stock if you dont over leverage.

 

I have a question:
this news story "Bear Stearns Agrees to Secured Loan Facility with JPMorgan Chase"
hit the dow jones newswire at 9:21am. So why did BSC open in the 50s instead of much lower? why did it start toppling at 9:37am, instead of earlier? I don't see a specific news item that hit the wires at 9:37am

 

it actually spiked up at first. people thought it was a good thing until they had second thoughts.

 

At what point did Enron become a good buy? Why even consider investing in something that could go bankrupt? Go find a good story somewhere else and invest in that.

 

It's the same people who bought the dollar when the fed announced another $200 billion in liquidity: the PPT.

 

Anybody that has money at bear is trying to liquidate. a run on the bank.