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Originally posted by syrinx high priest
Someone with an online trading system looked into this for me, and told me the put orders were called already, and the profit was made, but the story hasn't been updated. Can anyone confirm ?
Originally posted by SkepticOverlord
I'm seeing that in other financial discussions as well. The drama might be over.
SPZ IT (2007 Sep 700.00 Call) 747.40 0.0
Aug 30, 2007 @ 08:01 ET (DELAYED 15 MINUTES)
Last Sale 747.40 Tick Up
Time of Last Sale 08/29/2007 16:00 Exchange CBOE
Net Change 0.0 Previous Close 747.40
Open 0.0 High 0.0
Bid 0.0 Low 0.0
Ask 0.0 Volume 0
Open Interest 63230 Expiration Date 09/21/2007
Originally posted by OBE1
Originally posted by Nola213
Wow that graph is pretty amazing. It's unreal how closely the "actual" numbers line up for 87', and 07' up till right now.
Originally posted by RogerT
Dispelling the 'Bin Laden' Options Trades
www.thestreet.com...
By Steven Smith and Aaron L. Task
Staff Reporters
8/30/2007 3:23 PM EDT
Posted on The Street.
Originally posted by RogerT
Dispelling the 'Bin Laden' Options Trades
www.thestreet.com...
By Steven Smith and Aaron L. Task
Staff Reporters
8/30/2007 3:23 PM EDT
Posted on The Street.
...confirmed that the trades are part of a "box-spread trade."
"This was done as a package in which the box spread was used [as a] means of alternative financing at more attractive interest rates" []
Simply put, two parties agree to trade the box at a price that essentially splits the difference between current rates.
For example, the rough numbers would be that given the September 700/1700 box must settle at a value of 1,000 -- it is currently trading around 997 -- that translates into a 5% interest rate.
For the seller it is a way to borrow money at a slight discount to the prevailing rate, and for the buyer, it is a way to lend money at a low rate of return, but it's better than nothing[]