Quote from marketsurfer:
i am still waiting for proof of the options trades--- a reputable source like bloomberg would be nice.
thanks !
surfer
surfer
I't tough not to be skeptical. This is huge by any measurement. However; with all due respect, are we to dismiss the following as just a hoax?
Massive Put Options spikes and 'Naked' calls Bloomberg News reported that put options in UAL Corp (parent for United Airlines) surged 285 times the average volume and 75 times the total number of put options traded up until that time. This was the largest reported spike. In another observation of the same phenomena reported in the September 22nd Herald Sun, UAL put options contracts soared 90 times in one day over total from the previous three weeks. That's 90x not 90%. On September 10, put option contracts on AMR (parent for American Airlines) spiked 60 times the daily average and five times the total of all $30 put options traded before September 10. ["Pre-attack trading probed: Regulators in U.S., Europe and Asia check put options"; Judy Mathewson and Michael Nol, September 19]
"I saw put-call numbers higher than I've ever seen in 10 years of following the markets, particularly the options markets," said John Kinnucan, principal of Broadband Research quoted in The San Francisco Chronicle.
Bloomberg.com and Erlangersqeezeplay.com published reports identifying a clear pattern of highly unusual, and in some cases, massive spikes in put options in stocks that would have been deemed by those with detailed prior knowledge most likely hardest hit in the market aftermath of a WTC attack. These were primarily airline (UAL and AMR, notably not Delta), insurance, brokerage and hotel stocks. Phil Erlanger also noted a pattern of significant spikes in 'naked calls' in the same stocks. Naked calls are a high-risk form of short selling not backed up by stock position in the company at issue.
Thirty-eight companies were placed on a SEC list and circulated amongst brokerages that placed the put options on behalf of clients. These included among many others, TD Waterhouse, NFS (subsidiary of Fidelity of Boston), Alex Brown/Deutsche Bank, Goldman Sachs, and Lehman Brothers. [The San Francisco Chronicle; AP]. In the January 2002 Congressional record, an informal survey conducted by Levin-Grassley staffs, revealed that 10 of 22 responding securities and brokerage firms, managed accounts for 45,000 offshore clients.
Is Bloomberg.com, Erlangersqeezeplay.com, SEC list and the rest, publishing an elaborate pile of dissinformation?
C Robinson wrote:
Between September 6 and 7, the Chicago Board Options Exchange saw purchases of 4,744 put options on United Airlines, but only 396 call options. Although there was no news at that time to justify so much "left-handed" trading, United Airlines stock fell 42 percent, from $30.82 per share to $17.50, when the market reopened after the attacks. Assuming that 4,000 of the options were bought by people with advance knowledge of the imminent attacks, these "insiders" would have profited by almost $5 million.
On September 10, 4,516 put options on American Airlines were bought on the Chicago exchange, compared to only 748 calls. Again, there was no news at that point to justify this imbalance; but American Airlines stock fell 39 percent, from $29.70 to $18.00 per share, when the market reopened. Again, assuming that 4,000 of these options trades represent "insiders," they would represent a gain of about $4 million.
No similar trading in other airlines occurred on the Chicago exchange in the days immediately preceding Black Tuesday.
http://www.ict.org.il/
Are we to dismiss the above as another non credible source? CBOE included?
There must be some ETer's that have access to bloomberg option historical info. Search and report back would shed some light.
Anyway, a good dose of unbiased skepticism is a healthy thing.
I'm not into conspiracies, but these articles are compelling. And we all probably agree, that when sums of money, and high political interests are involved, "funny" things happen to information, truth, justice, and punishment.
