How do you lose $5 billion in one week?

Discussion in 'Trading' started by OddTrader, Sep 20, 2006.

  1. djxput

    djxput

    You know I laugh at that ...

    They are probably one of the reasons why we are having spikes in natural gas etc or maybe even oil.
     
    #81     Sep 22, 2006
  2. Just out of curiousity, does IB offer access to the same OTC NG derivative markets this guy was trading? (specifically long dated options on '07-'09 futures)?

    I'd just like monitor these markets over the next few weeks to see what additional fallout occurs.
     
    #82     Sep 22, 2006
  3. WinDiff

    WinDiff

    I smell more blood here and I see plenty of white sharks in the distance. This puppy is not hit the bottom yet and there seem to be plenty of newbie’s getting in on the long side. This won't stop falling till the last of mean reversion motherf*ckers are cleaned up and I suspect quite few other hf are on the brink of collapse

    Stay away

    WinDiff has spoken

    :D
     
    #83     Sep 22, 2006
  4. Do you have any news references to him selling these long options? I thought he was merely holding large open interest outright futures positions.

    But selling mass amounts of naked puts (on expensive Mar) and calls (on cheaper Apr) betting on the spread precisely could explain the massive and QUICK fall, more than just playing the spreads. The amount of outright NG positions (versus options) would have to be unreasonably massive to get to 5-6bil loss in such a quick time.
     
    #84     Sep 22, 2006
  5. The whole thing seems fishy because only one position is large in the equity portion is large, and its SPYs. There is no position showing Cinram, which I have read is some big position that Amaranth had.
     
    #85     Sep 22, 2006
  6. I really want to see a movie about this story/ guy. :D
     
    #86     Sep 22, 2006
  7. it would only be interesting to us traders..


    movie review:

    "compulsive guy keeps hitting the order button until his position no longer shows red. thinks he's great. then one sunday he wakes up and sees everything in red and he has no more buying power. contemplates a long vacation..."
     
    #87     Sep 22, 2006
  8. ... before thinking how to spend/ use the tens of million dollars for bonus money obtained as a hedge funds trader. :D
     
    #88     Sep 22, 2006
  9. Could you or anyone kindly tell me of a stock (no futures for me) that I could buy that would benefit in the event natural gas prices rise as I also believe that it is going to be one very cold winter. :(
     
    #89     Sep 23, 2006
  10. Artie21

    Artie21

    Dumb guy. Thought he was King Midas.


    Anyone with 10 billion in a bull commodities market can turn 8%.

    Think about it. Does anyone here think that they can't turn 8% or 16 or 24% in the market of their choice in good times, annualized?

    The humbling aspect of the market is fascinating.

    The hubris of the participant is mundane.
     
    #90     Sep 23, 2006