Wall Street's Naked Swindle : Rolling Stone:
"On Tuesday, March 11th, 2008, somebody — nobody knows who — made one of the craziest bets Wall Street has ever seen. The mystery figure spent $1.7 million on a series of options, gambling that shares in the venerable investment bank Bear Stearns would lose more than half their value in nine days or less. It was madness — 'like buying 1.7 million lottery tickets,' according to one financial analyst. But what's even crazier is that the bet paid."
2 comments:
The only crazy thing about this situation is that the trader used so much money. Someone who is willing to take such an outlandish position, is either insane or "knows something" that the rest of the market does not. Thus, this trader was probably taking part in insider trading of some form. However, it is surprising this person used so much money, because the more money that person uses, the quicker the regulators will be on the trail.
a comment for K.L.
maybe the position was exercised because they "knew" they wouldn't have to worry about being checked. high positions of power lead to that!
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