"Mystery trader bets on crash...."

[atvJim]

I don't know if this really means much,but; I thought it was worth posting.

http://www.financialnews-us.com/?page=ushome&contentid=2448565379
Financial News and Information from Financial News Online US

[Neen273]

I read this the other day too....in a more sinister-sounding article...seems the exact same thing happened with put options before 9/11. The only way anyone can make money with put options is if the market takes a huge dive, as I understood it. Sounds like someone knows something we don't know.

[Sozo]

That's the news on the european market options.

Same thing happened last week with US option trades.

It's on the tickerforum. (dot com)

[Michael_+_]

The following theories are being discussed widely within the stock and options markets today regarding the enormous and very unusual activity reported above. Those theories are:

1) A massive terrorist attack is going to take place before Sept. 21 to tank the markets, OR;

2) China, reeling over losing $10 Billion in bad loans to the sub-prime mortgage collapse presently taking place, is going to dump US currency and tank all of Capitalism with a Communist financial revolution. Either scenario is bad and the clock is ticking. The drop-dead date of these contracts is September 21. Whatever is going to happen MUST take place between now and then or the folks involved in these contracts will lose over $1 billion for having engaged in this activity.

9/11 itself was foreshadowed by unprecedented put options that were placed on United and American Airlines. Though the Securities and Exchange Commission refused to reveal who placed the options, private researchers traced the investments back to the Deutsche Bank owned Banker's Trust, which was formerly headed by then Executive Director of the CIA, Buzzy Krongard.

Put options on Morgan Stanley and Merrill Lynch, two of the World Trade Center's most prominent occupants, also spiked in the days before 9/11.

This is compounded by the comments of Former US Treasury secretary Larry Summers yesterday, who told ABC News that the risk of a recession in the U.S. was greater that at any time since 9/11.

"We certainly saw some repair and some return to normality this week, but I think it would be far premature to judge this crisis over for at least two reasons."

"First, we can't yet know that there aren't more shoes to drop in the financial area," he said, referring to the massive loss of confidence in securitised housing loans as US real estate prices sag.

"Second, we haven't yet had the time to observe what all this is going to mean for the real economy and for the actual process of job creation in our economy.

"I do not think we yet have ... a basis of making a prediction that there will be a recession, but I would say that the risks of recession are now greater than they've been any time since the period in the aftermath of 9/11."

Summers headed the US Treasury from 1999 to 2001 and was president of Harvard University until a year ago.

[medbiller777]

I can't imagine someone wagering that much money if they didn't have a really good reason to think that they were going to be on the winning end of that deal. I have felt that in some way our markets have been manipulated by "outside" influences in the last couple of years. Pumping it up to make investors feel good only to later watch it crumble into nothing. JMO. I guess we will know one way or the other come late September.

[Mike]

Maybe nukes going off in the Mid-East?

[James]

Though the Securities and Exchange Commission refused to reveal who placed the options, private researchers traced the investments back to the Deutsche Bank owned Banker’s Trust, which was formerly headed by then Executive Director of the CIA, Buzzy Krongard.




Makes you wonder.

[Waiting2go]

This is one of the more interesting bits of information I have read in a long time. Thanks for posting it.

[frodo82801]

It would be smarter to sell calls, because then you have the cash when the security drops. If you buy puts, you have to collect when the security goes down. And there would be a lot of interested people asking questions when you cashed in.

[Daniel1210]

Just prior to 9-11-2001 there was an inordinate amount of shorting of U.S. airlines stocks going on.