When you say THEY,are you referring to the CME,the clearing agents or some other entity? I would imagine that any sophisticated investor would be fully aware of those type of events and possibly account for it in their decision making process. You are correct that it is conjecture,but it is not conjecture that Vic blew up in a 12% move from peak to through(9% off closing prices).I think we are in agreement there was a fair amount of leverage being employed.A betting man would have to assume that Vic was also short excessive gamma to run into that type of trouble on that type of move. Should Vic have been short any longer dated options below 75% of spot strike for less than 2%(which it is),I would maintain that he was simply taking advantage of the margin requirements and blindly selling downside skew.. Worst case scenario,Vic blows up,and the reserve fund of the exchange and the clearing agents make good.. Interestingly enough,you and Surf point out that increased margin requirements led to Vics ultimate demise.What does that tell you about the Barefoot Wonders trading?? P.S. Do you think Vic was really Bullish or do you think he just loved selling those juicy,fat,delectable fat tails....
My brother asked, as he knows someone on Vic's team as well as people at Octane. I've got the email correspondence.
The problem with Vics supporters is their testimonies are almost as daming as Vics P&L. Vic is no fool.I give credit to Vic for exploiting the margining system and having more guts than brains to sell garbage options which require little to no margin capital..If I wasnt risk adverse,I too would be selling the downside skew as big as possible for 60 Bps....
I assure you I have no desire to argue with someone who signed up here all of 3 days ago. As far as your presentation of 'excellence in all things trading', would that include getting virtually wiped out for a second time on a 10% correction? I am sure Niederhoffer is a swell guy. However, as you said you would, it would be better if you keep your hero worship, or rather your tragic hero worship to yourself.
that MAY have been one aspect combined with redemption requests right at the WRONG time that led to this situation--- among other possibilities. this claim of knowing the positions is BS. only VN's team and the clearing firm knows and if anyone disclosed it --- it's a serious breach of fiduciary responsibility. it aint gonna happen, then again on an anonymous message board--- get real! surf
Surf,I have to hand it to you... When you like someone,you stick with that person thru thick and thin....
thanks,man, i do my best to support my friends. VN and his team have guided and helped me in numerous ways, it's the least i can do. best wishes, surf
While I will agree that this is an admirable trait, let us not forget an essential and overriding principle: http://www.elitetrader.com/vb/showthread.php?s=&postid=1719312#post1719312 That aside, I suppose that you could teach the world a thing or two about unconditional love. I expect that you are a good friend, if perhaps goofy at times, to the people you care about. "Tis the season. Peace on Earth, and all that...