Billions in Put Options purchased betting that the market will crash (UPDATE: CALL MADE?)

I spoke with my good friend that is a finical adviser tonight and he has seen the deal and that it is a hedge fund making it and they do stand to loose 4.7 billion.

Originally posted by parry noid
As well To my friend who pointed out something about me noting giving any more info on missing money heres what I found.

2.3 Trillion Dollars missing

how do you like them apples!!!!!

OWNED!!

Probably off topic, but one of the underlying messages I've seen over the years is that mucho trillions have been siphoned off the U.S. (and other affiliated economies), to finance who knows what ; NWO, Alien Defence Fund (think battle of Meggido and Book of Revelation), government of the Antichrist and the "Beast", or whatever.
Money is like water, it doesn't dissapear, it always ends up somewhere else, in some other hands. Where have the trillions siphoned off in the DOD "Black Budget" over the past 25 years gone so far? The trillions generated by the CIA thru managing ARAMOCO interests and thru illegal drug sales to American people? This also seems to have happened in most of the G-7 backed governments throughout recent history, so add to it.
Where has all this money (manna) gone and for what undisclosed purpose?
I guess that's one of the major reasons this forum exists, so anyone got any ideas?

Anatomy of a stock market crash. I did a little comparison shopping tonight, and came-up with this report on October 1987. A couple of excerpts on the Fed's response to that crises:


"In an effort to restrain the declines in financial markets and to prevent any spillovers to the real economy, the Federal Reserve acted to provide liquidity to the financial system and did so in public manner that was aimed at supporting market confidence. One of the most prominent actions of the Federal Reserve was to issue a statement on Tuesday morning indicating that it would support market liquidity."

"Following the crisis, open market operations were conducted in a high profile manner in or-der to underscore to market participants that the Federal Reserve was providing liquidity support."


These actions seem kinda familiar, and highlight the seriousness of the current situation. I was indifferent to the markets in 1987, but someone that wasn't, tells me that there was high volume in way-out-of-the-money OEX and SPX puts...two weeks before the Oct. 19 crash.

Originally posted by sn00daard

Or what other big news might have an impact of this kind on the market? Terrorist? ET's?

What is clear is: someone thinks they know something. Maybe the rest of us will too soon enough?

It's our trade imbalance, and the excessive wage/compensation demands, and our glutinous lifestyles that has brought us to this point.

Think of all those greenback dollars being sent to China and OPEC (and other) nations because of what we import. What good are those dollars for, if we have nothing to sell them in return to balance out all of what we import? Can we sell the OPEC nations iPods for less (or even the same) than what China can? And, what do we have to sell to China that they themselves couldn't make for less?

You see the problem don't you? Eventually those nations we trade with won't want useless worthless American dollars any longer. What are we gonna do when we can't import any more oil because nobody wants our useless funny money?

The only thing we have to sell or trade with the world any longer is our land, and once that's gone, then what? I'm sure China would love to use all those iPod dollars we sent them to buy all our farm lands, and so should we do that? And when that's all gone, what do we have left to trade for more oil and cheap affordable iPods? American slaves?

Unfortunately, or fortunately, depending upon your point of view, a One World Order and a one world currency will become necessary real soon now.

A very long article on several topics, but right in the middle there is some interesting information:

Financial Sense commentary
Financial Sense Commentary

There is currently several billion dollars in option bets on a global basis with the speculative premise that we will see a major drop of 15-25% or greater in the next 21 days. These are not just your run of the mill speculative option-plays these are very specific bets of a magnitude never seen before ... And these ...mega-trades are escalating…

...just last week someone sold short “naked” 61,730 SPX 700 calls....

I eventually did find the offsetting trade as it appeared at the SPX 1700 puts strike where 61,740 contracts were purchased long. If I have done the math right this trader/organization has roughly $3.7 billion in premiums sitting in their account and a massive short position worth a huge amount of money if the market tanks; now just ask your-self how many players are there that can risk and leverage this type of play (GS, BSC, LEH are a couple that come to mind)! ... Now if this trade was only a blip, it could be easier to ignore or discount... But ... it is spreading.

Another entity bought 245,000 September puts on the 2,800 strike on the DJ Eurostoxx 50 on 8/16; and they did so when the index was at/around 4,100 at the time...

...somebody else bought 10,250 puts on the Nikkei 225 Index at the 11,500 strike; while the Nikkei is currently trading around 16,000. ... their expiration on 9/14.

Monday CNBC reported that an investor or investors had bought more than $500 million in out of the money put options on the S&P betting for a further decline of 5% to 10% before September expiration.

...another trader sold 10,000 contracts on each of 12 strikes (120,000 contracts) of deep in the money SPY calls with an average price of $6500 each. That is $780 million in premium received and a huge risk if the market continues higher. The strikes were between $60-$95 when the SPY’s were trading between 146-147; ...

If it is directional and not a cash crunch spread due to margin calls or the need to raise quick cash they only a few scenarios make sense:

... most likely is ... strikes [against] Iran!

The next scenario is that we get hit with a significant terror attack! ...

The last scenario has a major financial institution falling apart over the next two weeks. Just imagine if a Bear Stearns or Lehman Brothers were forced to file bankruptcy because of the subprime/slime contagion; the markets would react as if a bomb went off, especially in the financial sector; as who would trust any bank or brokerage firm there would be a mass exodus for the door. BSC and LEH both report earnings 9/13,... (emphasis mine)

Tick ... tick... tick... ????

IMO the third scenario is the most likely. BSC and LEH are two of the parties that could place such a large bets and who also have access to "insider information" about their own upcoming earnings report. Knowing what effect they could have on the markets would provide too much of a juicy opportunity to profit from it.
.

Apparently report from CitiFX (Citigroup Foreign Exchange) discusses a market crash around mid-September:

Citi Research Discusses a Dow Crash Scenario
Citi Research Discusses a Dow Crash Scenario

The report is from CitiFX, or Citigroup Foreign Exchange, dated August 24, ... I wish I could just post the report with its great charts, but it is copyrighted, so I will quickly boil it down.

...the CitiFX technicals team looked back at 1987, 1990 and 1998. In looking at '90 and '98 here's what they say:

"With the 2 prior occasions averaging 21.7% down over 47 trading days the sweet spot (If this correction goes according to plan) would be to see the DJIA at just below 11,000 on or around 19 Sept 2007 and no later than 11 Oct 2007."

The report concludes: "Bottom line we hold our view that these are trying times and that the worst is not over. We also hold our view that lower yields will be seen in the months ahead ... without the Bernanke PUT we may have to entertain the idea of the Bernanke crash."

As the poster said, it's amazing that this kind of stuff is circulating on Wall Street.

It's the Labour Day long weekend and Tuesday everybody is back to school and back to work. A new trading season gets underway.

The information currently circulating is either disinformation to keep your average investor away so that the big boys can back up the truck and load up on cheap stocks before the next inflationary cycle pumps prices up or it's signalling just how bad things have become. Notice how Bush even stepped in to "jawbone" his "don't worry be happy" "we're here to help" message on Friday?

I guess we'll see in about three weeks.
.

Originally posted by Gools

IMO the third scenario is the most likely. BSC and LEH are two of the parties that could place such a large bets and who also have access to "insider information" about their own upcoming earnings report.

Investment Bank Bankruptcy? The rumors began to surface a week or so ago, but they were quickly dispelled. Major bank failure aside, was it coincidence that The Decider, decided-to-decide on housing, the same day that Bernanke spoke in Jackson Hole? After the smoke cleared, the double-barreled assault left the DJIA -21pts below last Friday's close...that's with an additional $31BB borrowed at the discount window. In another irony...mass layoffs in the banking sector are reported to begin after the Labor Day weekend.

Edit: *To replace link* Sorry


[edit on 1-9-2007 by OBE1]

. . . In another irony...mass layoffs in the banking sector are reported to begin after the Labor Day weekend.

This is going to affect everything across the board. Americans live on credit, and when that is cut back, expect consumer consumption to drop across all markets, starting from the more expensive consumer items (such as automobiles and home appliances and furnishings), and then onto smaller purchases (such as computers and iPods and vacations). That of course will result in massive layoffs in all sectors. But hey, look upon the bright and positive upside to all of this: massive poverty means less industrial rape and consumption of the Earth and thus less pollution and reduced global warming. Great idea and plan, eh? Of course, standing in soup lines during winter months isn't all that great, but at least we'll have solved global warning.

[edit on 1-9-2007 by Divinorumus]

[edit on 1-9-2007 by Divinorumus]

Isn't the whole idea of voting on when the stock market will crash like opening up a gas station next to a burning house?

Gools,

I think you may be right about one of the brokerages about to go "mammaries up". Lehman and Bear have always been the smallest of the big boys. This whole fecal hurricane ( got that from ticker and I like it) started with a couple of Bear's hedge funds imploding. Bear (I think) has been a takeover target for years, and I think any major drop in price would make that a reality. The question is would GS, Merril, or one of the others buy a nearly bankrupt brokerage to save the market?

Another possibility is a major bank having problems. I've seen lots of stuff about Wells Fargo, Bank of America, and Citi having strange glitches over the past week. It's all anecdotal, but multiple banks having "issues" in such a short time, makes you go "hmmm".

Also notice that the four biggest banks Citi, BOA, Wachovia, and Chase all borrowed a nominal (for them) $500 mil from the discount window at the fed. Three of the 4 issued a joint statement saying "We just did this to prove it's allright to do it.". At the same time, they also recieved "special permission" from the FED to "fund" their brokerage divsions more than the standard 10% of assets. If one of the major "money center" banks were to fail, the ramifications would be immediate and huge. It would hit even harder than Bear or Lehman croaking. The years of "cheap" money are finally coming home to roost. Anyone who is in the market, owns a home, or hell has any money in a non-FDIC insured account should be watching this closely.

I'd like to thank whoever first linked to tickerforums. It's the type of place i've been seeking for a while now(havn't registered still lurking, kinda my habit lurked here for years). I can get all the positive spin on markets I can stomach by watching CNBC. I finally found a place full of negative market sentiment, to balance the "goldilocks" of the MSM. Heck, they've even got a "tinfoil" forum for all of us.

I dunno here. If there was this massive amount posted and a specific date mentioned; wasn't there talk of China selling off their American held stocks in one massive swoop to derail the economy?

It was a couple of weeks ago. Still learning the system here but someone is a helluva lot faster digging info than I am.

"Oderint Dum Metuant!"

September is historically, a very bad month. If someone were to "tweak" the situation a bit, it could turn out to be a very, very bad month. As always, follow the money, and who influences those with it. I have been watching the weird relationship between gold and the markets, they are 'supposed' to generally track opposite, but for a while now, are tracking in concert. Suspicious.

well if somthing were to happen, what would follow it

Great little 12 month time-line detailing the events leading up to the market drubbing of October '87'. This piece was written in '97', on the ten year anniversary. A few interesting parallels to today:

Market optimism and risk appetite..not supported by fundamentals.

Overvalued, overheated indices.

A weakening Dollar & inflation concerns.

Escalating oil prices.

Bond market volatility.

Pre-election year congress and presidential hopefuls (see Richard Gephardt), voice concerns over unfair trade practices...particularly with regard to Japan.

Market concerns over reduced foreign purchase of US debt as a result of congressional trade actions (we just had our 4th consecutive week of reduced foreign treasury purchases).

Heavy market in sub-investment-grade junk bonds (birth of the CDO).

SEC investigations of ratings agencies, and the down-rating of bonds & securities.

Financial sector job cuts.

Investor concerns over escalating tensions with Iran.

Evidently the markets in Asia, and Western Europe were the first to get hit, later spreading to the U.S. The fact that the U.S. had bombed an Iranian oil plarform that morning, in retaliation for an Iranian attack on a Flagged oil tanker 3 days earlier...doesn't seem to get much play in the 'crash' discussions?

Wall St. was on a Roman Holiday that year...sex...drugs...corruption...& other peoples $. What a party! And me?...turkey farm in Winnemucca

In order for something to be built correctly, is must first be demolished.
I remmeber reading somewhere that todays financial markets are working on a system created in the 20's, and that its high time for an overhaul.

I personally think the economic crash approaching will preceded the next conflict within the middle east.

I would take great pride if it crashed on Sept19th, my birthday!
It would be the sure sign, that im meant to be supreme ruler of the world.

Its all written in the prophecy!

Originally posted by Skidz
I dunno here. If there was this massive amount posted and a specific date mentioned; wasn't there talk of China selling off their American held stocks in one massive swoop to derail the economy?

It was a couple of weeks ago. Still learning the system here but someone is a helluva lot faster digging info than I am.

"Oderint Dum Metuant!"

That's interesting. They recently launched a massive cyber attack against the pentagon that was quite successful I've heard.

All, I am new comer here in this topic. Is there any update to share for this thread .... ?
Appreciate for any kind of info regarding the stock market crash...??

US markets down a good bit today.

The news about the put options is spreading.

Wall street put options

The working are definitely starting to accelerate...



[edit on 5-9-2007 by Viszet Oki]

Hi all

I see this thread has calmed down, so not sure if this is any longer relevant...
I was reading www.conspiracyplanet.com...
and reading this quote brought my mind immediately back to this thread ;-)


FULFORD ON THE ILLUMINATI

"Below is a brief a summary of the intelligence I have received from sources including: former Japanese Prime Ministers, senior Yakuza gangsters, senior Japanese Freemasons, Western intelligence agencies etc.

"First the Illuminati are really inbred families of European and North American traditional aristocracy and banking families. They control the U.S., England, Europe (except for Scandinavian countries, Germany and Italy; Italy kicked them out in the 1970's),Japan, Africa, Iran, Canada and Mexico. They do not control China, Russia (Putin kicked them out for the first time since 1917), India, South East Asia, South America, Cuba etc.

"Their goal is to create a world government. Until 2 years ago the plan was the New World Order. That was outlined pretty clearly in the Project for a New American Century. However, with the debacle in Iraq, the secret government of the West changed to a new plan that is a world government based on the EU. To do this they will sabotage the U.S. economy.