A $2 Million Bet That Bank Of America Will Be $4 By November
Will BAC be at $4 by November? We don't know. But someone just made a $2 million bet that this is precisely what will happen. Minutes ago, 54k $4 BAC November Puts were purchased at $0.37. The total price: $2 million. Will this event occur? Like we said, we don't know, but it sure looks far more realistic than Paulson's bet that BAC will trade at $30 by the end of the year.
h/t razvan
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Betting against gold and silver at this point is like betting your wife won't have sex with you tonight. It is probably correct given the trend but you want to be wrong.
Betting against gold and silver at this point is like betting your wife will have sex with you tonight. It is probably wrong given the trend but you want to be right.
Fixed that for you.
My wife and gold are very different.... One only goes up, the other only goes down....
Yuk, yuk, yuk...Comments do get giddy on days like these. And thats a quote!
I'll make a $2 million bet that that $2 million wont be worth $4 in 2015 purchasing power.
www.silvergoldsilver.blogspot.com
I'll take that bet. Let's agree that $4 in today's dollars purchases one gallon of premium unleaded gas in the United States. If I can buy one gallon of that fuel for anything less than $2 million on August 30, 2015, then you will owe me $2 million. If a gallon of premium gas costs more than $2 million, I'll owe you $2 million.
Do you really want to make this bet?
That's a stupid bet. We are deflating. No matter what the FED does, it cannot print faster than asset values are imploding. Having gold for the wrong reasons is still a good call-but gold is now the reserve currency as the dollar gets unwound from the system. It will retain some strength for at least a decade as the credit system unwinds their positions and systems.
The financial system is just running in reverse. Less credit, less money supply, more gold power, falling asset values, more unemployment, more crime, less tolerance for government and corp corruption.
But on the way down, we have neo liberal and neo-con fascism
+1 succinct
Well said.
Longs & Wrongs, get out your depends, ladies.
I'm envisioning a 700+ point drop on the Dow, and an even sharper % selloff on spooz & naz.
Volume up, make it so.
No one wants to be bitten twice let alone thrice.
The fact is that the FED can create infinite amounts of U.S. dollars as quickly as it can enter the zeros into its system. For instance, I might take 45 seconds or so to create $900,000,000,000,000,000.00 or nine hundred quadrillion new U.S. dollars. Believe me, if they did this, it would result in inflation, even hyperinflation.
I like Jim Willie's take:
8/10/2011 Inflation & Deflation In a Storm"The Deflationist crowd and the Wall Street hive cite instability, uncertainty, and shaky confidence, all true, but off the mark. The actual motive and thrust behind the record Gold price are:
A stupid bet? If I'm wrong and lose, I can pay off the $2 million in less than a day, even if I'm just working a job for hourly wages. If I'm right, I get $2 million that has considerably more buying power. This bet has fantastic risk-reward for me. In fact, it's almost riskless.
Yeah, asset values are imploding (real estate, at least). Everything else--the necessities--seem to be getting more expensive. TD's chart from earlier (gold vs. treasury yields) shows that we're facing both inflation and deflation, and that is borne out in experience (mine, anyhow).
Regardless of what we're facing, if anyone REALLY wants to bet $2 million that $2 million in 2015 will have less buying power than $4 today, then I will take those bets all day long.
I would like to see an announcement that BAC is thinking of a global merger with Dexia, Unicredit, Soc Gen, LLoyds and/or Commerzbank. That should be bullish for the stock....
So you must have been on the other side of that trade. Well, times like these are definitely good for Murders and Executions. Maybe the squid will mop it up, under a government guarantee, of course.
Put up or shut-up Silverman.
Gold has gone down in the past, let's hope the converse cannot be said of your wife. ;)
Could you live with your wife and gold never going down?
'The Bank of Oppotunity'
Laughing my muthafuckin' mercedes-burnin' ass off!
"Laughing my muthafuckin' mercedes-burnin' ass off!"
Yeah, looks like the trend is gonna be towards the Toyota Corolla type of incognito.
Bastiges. Flush 'em out. Where they live, where they work, where they vacation.
http://www.thelocal.de/society/20090104-16525.html
Oh, god, that's so true. And so painful. And so true...
Moynihan bought those puts with his remaining net worth.
Guess someone read Reggie's article...
http://www.zerohedge.com/contributed/after-accurately-predicting-french-...
How do we know this position isn't a hedge by Paulson?
Bingo....
http://www.youtube.com/watch?v=cGBRAGVV8s0
...they call themselves ''mark to myth market makers'' lol
I'm thinking Moynihan.
Right - hedging his retirement? Didn't retard say it's all in BAC or am I thinking of someone else?
rule #1 never get hooked on your own product.
Would it not be the perfect hedge?? If everything you owned was in BAC stock??
Good point, he said his only income is from BofA. He has no choice.
sure looks like a hedge. BAC either goes bust or resumes some of its value. So it may well be a hedge for a new speculative position at these levels. With EFSF crashing currently and BAC (possibly/probably) being a major default hedge counterparty, I consider a hedge for total BAC collapse pretty reasonable.
But besides Paulson, there is a whole bunch of others still sitting on their large positions in financials, just look at the accumulation especially in BAC through Q4,10. At 0.37, 2m$ is not very effective though, considering the position sizes.
okay, that cinches it...this fits in with everything i was thinking for monday:
i'm taking the free pretend money later today with a bold short on HP right now, as of 1:15 eastern. and i'm shorting BAC and CITI for tomorrow, hell, i'll start it now...looks like we just crested the last hill into the killing fields.
free money from ZH.
i think they used to call it Mannah.
look out for the quail,
janus
Brains.............BRAINS......BRAINS
Fast forward to 2:05 "Brain and brain, what is brain!"
http://youtu.be/2zKDQfVbWqc
Probably Brian Moynihan.
Through a proxy, unless he's dumber than we thought.
+1
You'd be surprised how few people who should use proxy do. For example the State Institute for Information Technologies In St Petersburg Russia just tried to hack into our email server. LMAO, THEY need a proxy
for all you know that might be the proxy they are using.
Heh, it's possible
Short sale ban coming.
Unfortunately, they don't realize it is actually easier to 'put' a stock down than to short it.
Like putting down a sick animal. Couldn't happen to a nicer bunch of idiots.
It's gonna be a wild ride, either way.
love my skf
CDS might still be cheap, 365/390 being the high run on Aug12th ive seen for 5yr protection.. currently at 322/332
There were some large bear put spreads put on yesterday. Same large #s. Wonder if this transaction is related.
Help me understand...why do a bear put spread when you can to a bear call spread and if you are right you don't have to unwind. Am I thinking about this correctly?
A 2 million dollar bet that there will be no QE ?
as some 1 said above.. it cd be a 2 million $ hedge that there might not be QE..
No...somebody's betting on an MBIA win in October....maybe da judge.
http://www.bloomberg.com/news/2011-08-18/bofa-mortgage-risk-may-rise-9-billion-if-new-york-judge-sides-with-mbia.html
got me on the bug
That damn bug! It's gotten me a coupla times. Great avatar.
Too Big To Fail Banks should be renamed "Too Big to Lend". None of these banks are lending money commercially to small businesses. Let them fail!
I work in the commercial loan industry and the only banks really lending money to small businesses are Credit Unions - which are not really banks. Obomoron gave the entire TARP rescue money to these worthless institutions and they lent out virtually no money to America. Learn your lesson!
Tyler Zero, you have a bizare stalkerish hard on for those that succeed huge. You are knocking Paulson on some questionable trades.....SFW? The man personally made $5B from the last credit crisis. $5B!!!!
Is it jealousy, envoy, insecurity, revenge...what is it man? lay off!
If you had a 1/10 of his balls you would have started the ZH Hedge Fund and raised a bil of your own and leveraged the shit of out of it to buy gold...but you didn't!
So uhhhh, you work for Paulson aye? Lulz
No, but as a self-made entrepreneur I can totally appreciate and respect what it takes and don't have a hate-on for other's success.
To the guy who said he got lucky....sure...
-he has a Harvard MBA, 1st in his class
-he started his hedge fund in 1994 with $2m and 1 employee
-he turned a net worth of $100m into $16b in under 5 years
ya, I guess he lucked out.....
Read The Greatest Trade Ever and have some respect for his success. Trust me it feels better than jealousy.
Paulsen - "Self-made entrepreneur"??? .
He was handed a fraudulent trade on a silver plater!
We are now seeing what he is capable of (-30%) based on his own merits.
Fraudulent trade...?
You jealous fuck. $15B - 30%....I'll take it.
Paulson eats shit.
... On a silver platter... Bingo. I couldn't believe the SEC did not subpoena the Paulson client list during the Abacus flap.
Rigged game.
No time for subpoenae, what with all the shredding and pr0n...
Yes, Paulson made a killing last time, but it seems it was a lucky bet as since then he hasn't been too hot. Sino Forest par exemple. Maybe leveraging "the shit" out of other people's money isn't everyone's cup of tea.
what makes you presume Paulson isnt 1 of the ZHers.. ?
Awesome Avatar!
I almost smushed my screen to kill that dang bug
Weird.
TD & Zerohedge have put their assets into educating people, such as myself. This my friend is priceless....................................
I bet you won't be able to withdraw $4 from Bank of America by November.
No problem. BAC will be folded into JPMorganChaseMetLifeWellsFargoStateFarm. Might take a day or two, at the most. After the safe deposit boxes are swept for gold.
+ Pure awesomness.
I want YOU as the Noveau Naming Czar.
$4 will be the transaction fee everytime you use your card.
and gold will be.. ?
134 k total traded on day. bet is much bigger than 2 million. Puts may be hedged too and simply a bet on overall movement in BAC or bet on skew being too flat....Or it could be an outright short position in BAC at $4.
Good! Go options junkies!
Personally, and until this crap bank is at zero and its doors closed, I won't be satisfied.
can kass & paulson be all wrongggg...?
If BofA goes down does that mean I don't have to pay them back the $1000 I put on a 0 interest balance transfer? Sadly I know the answer is yes I still have to pay them back unless I don't want to and deal with harassing phonecalls for a couple weeks.
Are you kidding? Harrassing or hanging up on the off-shore indian collection agents calling is great fun!
Zero server need a n upgrtade?? too slow
So CONTRIBUTE already. Every little bit helps.
donate
I will donate if Pladizow gives us a link with the woman in the avatar staring in a porn flick...
paulson, was playing a rigged game, he helped rig it. made money, or stole money ?
He makes money the old fashioned way - he steals it.
The jealous are troublesome to others, but a torment to themselves. ~William Penn, Some Fruits of Solitude, 1693
Sure, Paulsen gets the award for stealing and almost getting away with it. Sounds like you're jealous.
Same thing happened one day before Bear Stearns imploded, except it was 1,500 puts.
Tomorrow is a Friday.....
Anyone notice no one ever found out who shorted the airlines before 9/11? Computer forensics was pretty good back then, still pretty close to where we are now.
Ah, that one will come out around the time we actually find out who killed Kennedy.
That inquiry lead to our beloved government which, of course, aided and abetted the attack. Once a whiff of insider trading within the U. S. Government came to light the investigation went into the same thermite laden hole as the twin towers. Tuco
Long nano-thermite, Bitchez!
Paulson probably sold the puts and collected the premium thinking:
Either
I will recover some of my losses on BAC positions that I just liquidated.
Or,
The shares I sold will be put back to me at a net price of $3.63; a level I would probably climb back on board anyway.
And definitely,
If I don’t do something to try and pull a rabbit out of this shitty hat of a market, my ass is toast come December.