Trader May Have Netted $20 Million on Fed Policy Bet

That article is ill researched and contains a lot of errors. First of all, a professional trader making 20mil in a year puts that trader squarely into the average field. Nothing special especially given its a multi month trade that was exposed to risk. Then, a put butterfly is not what the author described it supposed to be. Next, euro dollar futures and options contracts are by far not the most traded contracts in the world. The list of errors goes on... I recommend you to move on and forget what you read there.

SumZero said:
Can someone shed some light on this ?
https://www.bloomberg.com/news/arti...-20-million-profit-on-hawkish-fed-options-bet

They speak about a (Long ?) Put Butterly but that would profit the most if the market went nowhere, which is not what they imply in the chart.

I guess there's some management of an initial position legging in and out ? Just curious what could be behind this with the available limited information.
More...
 
https://www.elitetrader.com/et/threads/big-eurodollar-spread.306542/

I assume he was long an OTM put fly, which would make money when the underlying moves towards the strikes... max at body...

I think he doubled and then got out, thinking it wouldn't move further towards the body....

As @Zzzz1 points out, I find bloomberg (or any news/analysts site really) lacks a lot in actual info. They tend to hype a story of which probably half isn't even true. The other day it was about VIX options... journo's are useless...
 
I wish journalists focused again more on unbiased news reporting rather than story sensationalism.

JackRab said:
https://www.elitetrader.com/et/threads/big-eurodollar-spread.306542/

I assume he was long an OTM put fly, which would make money when the underlying moves towards the strikes... max at body...

I think he doubled and then got out, thinking it wouldn't move further towards the body....

As @Zzzz1 points out, I find bloomberg (or any news/analysts site really) lacks a lot in actual info. They tend to hype a story of which probably half isn't even true. The other day it was about VIX options... journo's are useless...
More...
 
Zzzz1 said:
I wish journalists focused again more on unbiased news reporting rather than story sensationalism.
More...

They care more about eyeballs and views and being First to break the story.
Alot of so-called cool, awesome news stories usually turns out to be fake or missing in vital facts o_O:confused:
 
Very much on-topic Vanz! But yes, it is getting ridiculous... but I said that 5 years ago as well... so basically, I'm not an expert on it... and my plumber is (what does that tell you) ;)

BTW, what is going on with those Patriots??? I thought they were the fav?
First Brexit, then Trump... now the Falcons... when does it stop!?
 
SumZero said:
Can someone shed some light on this ?
https://www.bloomberg.com/news/arti...-20-million-profit-on-hawkish-fed-options-bet

They speak about a (Long ?) Put Butterly but that would profit the most if the market went nowhere, which is not what they imply in the chart.

I guess there's some management of an initial position legging in and out ? Just curious what could be behind this with the available limited information.
More...
It's just an OTM put fly and it's not all that exciting, as I mentioned in the other thread...

It looks like it was the EDM7 98.875/98.625/98.375 fly, originally bought in 2016 when EDM7 was trading with a 99 handle. In May 2016, paper was buying it for 3.5 or thereabouts. It was being sold recently for arnd 9.
 
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