Kat Hak Sung508. The stock market crash (2) (9/13/07)Wed Sep 19, 2007 14:47
508. The stock market crash (2) (9/13/07)
There was also another similar trade done earlier in European stock market.
Re: "Renée Schultes
16 Aug 2007
Carry trade unwinds as yen hits one-year high
An anonymous investor has placed a bet on an index of Europe's top 50 stocks falling by a third by the end of September, as world equity markets plunged for a third day and volatility hit a three-year high.
The mystery investor has bought put option contracts on the DJ Eurostoxx 50 index that will result in a profit if it plunges to 2,800 or below by the end of September. Based on the 2,800 strike price, the position covers a notional €6.9bn, and potentially even more using a market price of about 4,100 when the trades were done on Tuesday and Wednesday.
The identity of the investor is unknown but market sources speculated it was either a large hedge fund hedging itself against deepening losses, or a long-only fund manager pressing the panic button to protect its gains.
The investor has bought a total of 245,000 put options on the index. The September put option with a 2,800 strike was the most popular DJ Eurostoxx 50 contract yesterday, according to data from Bloomberg.
The news was dated on 8/16. So the main trade was done on 8/15 (yesterday of 8/16). That was coincidence with the first phase of August plot. (8/15, Peru earth earthquake. 8/16, my wife's Peru travel started.) The operation of "make a fortune" started at same time of operation elimination.
Someone unknown foresaw a big stock market collapsing any time between 8/16 to the late September. It could be the result of expecting a mass terror attack. And I have alleged that kind of terror attack would happen right after the action date of 8/31 to 9/3 when Bay Bridge was shut down.(to distract a framed drug case)
This is why on 9/5, we saw two news in media, one was about terror attack and the other was about China dumping US dollars. Both were planned as the first wave of attack on stock market.
Re: "Germany arrests 3 in alleged plot on U.S. sites
By Noah Barkin and Sabine Siebold Wed Sep 5, 9:03 AM ET
Re: China threatens `nuclear option' of dollar sales
Then why did the Feds set the liquidate date of the stock option on 9/21 and the end of September not in early September? Because they planned a main attack on stock market in Mid-September. At that time, Federal Reserve would have a meeting to discuss about the bench mark interest rate.
Feds build up an expectation that the Federal Reserve will reduce the interest rate to save the economy which is hit by the sub prime loan crisis. If the interest rate remains unchanged or goes upwards, then it will touch off a selling wave to crash the stock market.
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