A possible CFTC solution for REFCO LLC

[riskarb]

Quote from TheStudent:

I think what you are suggesting is wholly inaccurate. From all accounts, VN paid Refco every red penny.

I don't think he would have had to go through the humiliating exercise of selling his silver collection if he got off scott free and left Refco with the hit as you are suggesting.

What I am suggesting is that he hit them with a whopping debit and then initiates litigation. The gall it takes to cite "unfavorable prices" ... hence my "short puts are +delta" comment. It's a simple matter of being very wrong and not having the sense to execute on your own behalf.

http://anasazi.umsl.edu/FIN455/Options/niederhoffer.htm

Note the use of "innocuous"

Don't blame the weather when you forget your umbrella.