How do you lose $5 billion in one week?

[djxput]

You know I laugh at that ...

They are probably one of the reasons why we are having spikes in natural gas etc or maybe even oil.

 

[Trader KGB]

Just out of curiousity, does IB offer access to the same OTC NG derivative markets this guy was trading? (specifically long dated options on '07-'09 futures)?

I'd just like monitor these markets over the next few weeks to see what additional fallout occurs.

 

[WinDiff]

I smell more blood here and I see plenty of white sharks in the distance. This puppy is not hit the bottom yet and there seem to be plenty of newbie’s getting in on the long side. This won't stop falling till the last of mean reversion motherf*ckers are cleaned up and I suspect quite few other hf are on the brink of collapse

Stay away

WinDiff has spoken

 

[scriabinop23]

Quote from Trader KGB:

Just out of curiousity, does IB offer access to the same OTC NG derivative markets this guy was trading? (specifically long dated options on '07-'09 futures)?

I'd just like monitor these markets over the next few weeks to see what additional fallout occurs.

Do you have any news references to him selling these long options? I thought he was merely holding large open interest outright futures positions.

But selling mass amounts of naked puts (on expensive Mar) and calls (on cheaper Apr) betting on the spread precisely could explain the massive and QUICK fall, more than just playing the spreads. The amount of outright NG positions (versus options) would have to be unreasonably massive to get to 5-6bil loss in such a quick time.

 

[psytrade]

The whole thing seems fishy because only one position is large in the equity portion is large, and its SPYs. There is no position showing Cinram, which I have read is some big position that Amaranth had.

 

[OddTrader]

Quote from scriabinop23:

Do you have any news references to him selling these long options? I thought he was merely holding large open interest outright futures positions.

But selling mass amounts of naked puts (on expensive Mar) and calls (on cheaper Apr) betting on the spread precisely could explain the massive and QUICK fall, more than just playing the spreads. The amount of outright NG positions (versus options) would have to be unreasonably massive to get to 5-6bil loss in such a quick time.

I really want to see a movie about this story/ guy.

 

[scriabinop23]

Quote from OddTrader:

I really want to see a movie about this story/ guy.

it would only be interesting to us traders..


movie review:

"compulsive guy keeps hitting the order button until his position no longer shows red. thinks he's great. then one sunday he wakes up and sees everything in red and he has no more buying power. contemplates a long vacation..."

 

[OddTrader]

Quote from scriabinop23:

it would only be interesting to us traders..


movie review:

"compulsive guy keeps hitting the order button until his position no longer shows red. thinks he's great. then one sunday he wakes up and sees everything in red and he has no more buying power. contemplates a long vacation..."

... before thinking how to spend/ use the tens of million dollars for bonus money obtained as a hedge funds trader.

 

[Handsome]

Quote from riskarb:

FWIW, Citadel will make a billion off this deal, minimum. They have the capital to ride out the shots the funds may take. WTF would attempt to run stops at $5.00 against Citadel?

Time to buy NatGas. I think it's going to be an abnormally cold Winter.

Could you or anyone kindly tell me of a stock (no futures for me) that I could buy that would benefit in the event natural gas prices rise as I also believe that it is going to be one very cold winter.

 

[Artie21]

Dumb guy. Thought he was King Midas.


Anyone with 10 billion in a bull commodities market can turn 8%.

Think about it. Does anyone here think that they can't turn 8% or 16 or 24% in the market of their choice in good times, annualized?

The humbling aspect of the market is fascinating.

The hubris of the participant is mundane.