Joe Lewis lost $2b on BSC

the total open interest of all bsc puts was 400~500k. every one of them became itm. if the oi from last friday was the same as today, then that means the aggregate increase in those puts was over $1b.

obviously some people made a lot of money.
 
I'd like to know how two Hedge Funds at Bear and many other financial institutions managed to "blow up" the funds when the market is pratically tanking every chance it could? I thought Hedge Funds are making a fortune in this type of market.

Any intelligent input on this subject? Thank you:)
 
I am very surprised to see he could hold the dead stock that long, despite all of the financial "blow-up" recently, as well as subprime crisis. The only thing I can explain is: he traded from emotional not logic. Even today, after the offer of $2 news released, he still insisted not believing BSC shares are worthless.
It's very sad to see a great trader like him turned "bagholder".



Quote from turkeyneck:

Lewis, a former foreign exchange trader who was born in an apartment above a pub in London's East End, declined to comment through a spokesman. The loss is almost half his $2.5 billion fortune, as estimated by Forbes magazine in its 2007 survey.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3sR9N6dOoUM&refer=home
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Quote from Renegen:

If his fortune before the loss was 2.1b then where's the worry?
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Because the other half of his money was in Lehman Brothers... :)
 
Quote from lojze:

Yes, this is possible, but did anybody really earn significant amount with those puts?
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I bought $5 strike puts at $0.10/contract just after halfway through the market on Friday.

Today they peaked around $2/contract and closed around $1.05.

EDIT: I did miss out on the way out of the money puts w/ LEH though. A couple of factors: wide bid/ask, and the new strikes (7.5, 5, 2.5) were added today and began with no bid and 4.80 ask.

BTW, anyone besides me see some significance in new strikes being added in April today? BSC added new low strikes on Friday....
 
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