Remember this pathetic option seller who lost $150 million for shorting natural gas and crude naked?

Discussion in 'Wall St. News' started by JSOP, Aug 13, 2020.

  1. maxinger

    maxinger

    That is interesting. But He is still a newbie even if he has traded for 1 century
     
    #11     Aug 13, 2020
  2. maxinger

    maxinger

    NG (2).png

    I can still remember very clearly what happened in Nov 2018, US winter time.
    It was very very cold in US.
    upper chart - price chart.
    lower chart - range chart.

    price went up very drastically in Nov 2018.
    lots of ET members suddenly became very interested to long NG futures.
    You can see the evidence in ET forum.
    but they were far far too slow to long it.
    because price went down massively after that.


    I was doing day trading during that time.
    It was very very difficult to trade NG because its movement was very chaotic, messy and violent.
    So what did I do? because of higher risk, I had to reduce my trading quantity.


    what did that
    pathetic option seller who lost $150m shorting NG do?
    most likely, he traded very heavily !!!!!
    and worst, it was naked credit option!
     
    #12     Aug 13, 2020
  3. JSOP

    JSOP

    The guy I remembered shorted the NG options at like 2.5 or something and the price shot up to 4.X. That was brutal. I feel really bad for those investors.
     
    #13     Aug 13, 2020
  4. Atikon

    Atikon

    ^
    This was a 360 degree stupidity situation, that lad managed a bunch of accounts, while those account holders where on the hook for any losses (unlimited). Then he just did a few Karen the Supertrader trades during exreme market volatility. I remember that apology video from way back when, that his lawyers made him take down....just a cautionary tale. Sad to see ppl still getting harassed way into their retirement bc of this guy
     
    #14     Aug 13, 2020
    ironchef likes this.
  5. Nobert

    Nobert

    Hmnn, any ideas on why did they told him to do so ?
     
    #15     Aug 13, 2020
  6. Atikon

    Atikon

    admission of guilt from the get go I presumed
     
    #16     Aug 13, 2020
    Nobert likes this.
  7. ironchef

    ironchef

    @Sweet Bobby, please explain to them why selling naked puts is not risky, that you can hedge and profit with a calendar, like when you made a killing with it this Mar 2020.
     
    Last edited: Aug 13, 2020
    #17     Aug 13, 2020
    bone likes this.
  8. Tradex

    Tradex

    Your broker gave you the permission to sell naked options as a newbie??
     
    #18     Aug 13, 2020
    Nobert likes this.
  9. ironchef

    ironchef

    You can sue someone for fraud but can you sue someone for being incompetent?
     
    #19     Aug 13, 2020
    Nobert likes this.
  10. maxinger

    maxinger


    right.
    you can sue someone for fraud but not being incompetent.

    most likely he was being sued for being negligent .
     
    #20     Aug 13, 2020
    JSOP likes this.