THIS IS SCARYING ME...another attack??

  1. i feel sick to my stomach knowing another terrorist attack can happen...read on

    August 26, 2007
    $4.5 billion options bet on catastrophe within four weeks

    Anybody have a clue as to what these 'investors' are expecting?

    The two sales are being referred to by market traders as "bin Laden trades" because only an event on the scale of 9-11 could make these short-sell options valuable.

    There are 65,000 contracts @ $750.00 for the SPX 700 calls for open interest. That controls 6.5 million shares at $750 = $4.5 Billion. Not a single trade. But quite a bit of $$ on a contract that is 700 points away from current value. No one would buy that deep "in the money" calls. No reason to. So if they were sold looks like someone betting on massive dislocation. Lots of very strange option activity that I haven't seen before.

    The entity or individual offering these sales can only make money if the market drops 30%-50% within the next four weeks. If the market does not drop, the entity or individual involved stands to lose over $1 billion just for engaging in these contracts!

    Clearly, someone knows something big is going to happen BEFORE the options expire on Sept. 21.

    THEORIES:

    The following theories are being discussed widely within the stock and options markets today regarding the enormous and very unusual activity reported above and two stories below. Those theories are:

    1) A massive terrorist attack is going to take place before Sept. 21 to tank the markets, OR;

    2) China, reeling over losing $10 Billion in bad loans to the sub-prime mortgage collapse presently taking place, is going to dump US currency and tank all of Capitalism with a Communist financial revolution. Either scenario is bad and the clock is ticking. The drop-dead date of these contracts is September 21. Whatever is going to happen MUST take place between now and then or the folks involved in these contracts will lose over $1 billion for having engaged in this activity.

    "$1.78 Billion Bet that Stock Markets will crash by third week in September Anonymous Stock Trader Sells 10K Contracts on EVERY S&P/Y "Strike" Shorts Stocks "in the money" effectively selling all his SPY holdings for cash up front without pressuring the market downward.

    This is an enormous and dangerous stock option activity. If it goes right, the guy makes about $2 Billion. If he's wrong, his out of pocket costs for buying these options will exceed $700 Million!!! The entity who sold these contracts can only make money if the stock market totally crashes by the third week in September.

    Bear in mind that the last time anyone conducted such large and unusual stock option trades (like this one) was in the weeks before the attacks of September 11.

    Back then, they bought huge numbers of PUTS on airline stocks in the same airlines whose planes were involved in the September 11 attacks.

    Despite knowing who made these trades, the Securities and Exchange Commission NEVER revealed who made the unusual trades and no one was ever publicly identified as being responsible for the trades which made upwards of $50 million when the attacks happened.

    The fact that this latest activity by a single entity gambles on a complete collapse of the entire market by the third week in September, seems to indicate someone knows something really huge is in the works and they intend to profit almost $2 Billion within the next four weeks from whatever happens! This is really worrisome."

    Source: Ticker Forum
     
  2. After 9/11, I was frightened, not for myself, but for my children and the world they will be living in after I'm gone. But personally, I don't really worry about these things. For reasons I won't go into, the economic problems that 9/11 caused for dh's career/finances have just made me tune this out. Maybe I'm in denial.
     
  3. ^^^^ITA^^^^ I can't control it, I'm not going to worry. I would rather spend what time I have here happy and enjoy the life I am living. If I worry, I am allowing others to control my life and consume my time with fear, which is part of their mission.
     
  4. It's almost been 6 years since 9/11 and no major attack on American soil.

    Who would have ever thought that the days and months after 9/11?

    Try not to worry about it. PS. what is the news source on the story
     
  5. the source says it's from ticker forum but i have been looking online and i see it in different places...your right though we should just live out lives and not in fear
     
  6. I agree with the others. Things like this are out of my control. I could be hit by a bus tomorrow - I have to live in the moment. All sorts of corrupt things go on in this world and have since the beginning of time. I can only affect my immediate surroundings and I'd rather be joyful than mournful.
     
  7. I figure that the US is one of the safest places in the world as far as terorist attacks. 9/11 is horrible, but disasters happen frequently all over the world. I worry more about my neighbors, crazy drivers, violent gangs, and robbers to tell you the truth.
     
  8. I think bagnshoo has the right idea. Maybe you can't control the various ways rich men decide to get more money. But you can control so many things in your own life, and one of those is how much you enjoy all the fabulous things that exist in the world!
     
  9. Being scared of another attack is exactly what Bin Laden wanted every American to be. He will win America if we are all living in fear of terrorists. I would let CIA and FBI worry for me. If another terrorist attack happens, let it happens. But at least, I enjoy life without fear of terrorist up until the moment it happens to me.
     
  10. I hope our government is taking notice of such business transactions. I do not really understand the article, but I read it last night and did not think much about it until I saw the CNN breaking news headline about Bin Laden making a video statement. *shiver*
     
  11. Every time I see one of Bin Ladens video statements, I feel like I'm living in an episode of Batman. Bush is like commisioner Gordon and Bin Laden is like the joker, who leaves a video tape on the steps on the Gotham police department (the Whitehouse). Only we have no caped crusader.
     
  12. I'm like the others...I just live my life...I can't let fear dictate my life because that is not living!
     
  13. Not worth worrying about in my opinion.