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How One "Lucky" Options Trader Made A 60,000% Return Over The Weekend
With Keurig Green Mountain trading around $51 late on Friday, one "hopeful" options trader decided it was an opportune time to buy 99 $60 call options (controlling 9,900 shares or around $594,000 worth at the strike) which unless something miraculous happened would expire entirely worthless within a week. Well... a miracle happened over the weekend, CMGR was bought at a 78% premium and that "lucky" options trader cashed in his lottery ticket with a 60,000% return.
With a strike requiring a 20% gain in less than 7 days... seems like a very lucky last-minute winning buyer of this lottery ticket.
h/t @SJosephBurns
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Nothing unusual there.
Dimon's love child.
Hillary. Just another lucky thing like her cattle futures.
She(He) is a cattle future
He(She) is a future cattle
but, how do we know that whoever bought these calls, wasn't maybe already short the stock outright/naked, maybe planning to cover some shorts this week, and the calls weren't just a hedge, "just in case" ?
Who did he know and how did he know him?
Worse...who is the dumb ass on the other side of the trader. Typically it is me, but not this time..
All we can hope is that it is one of the market makers.
I know nothing ...
https://www.youtube.com/watch?v=kp9BJxFHDYI
99 calls?? Why not an even 100? Or is that some sort of reporting requirement threshold?
I'm sure Lord Blankfein has a hand in it, so stop asking question.
It's how you pass a bribe in the open with a tax receipt. Should be able to look at the transaction ownership to find out the names. As shady and as crooked as markets are, every transaction on a public market has to have a filing done for all the bean counters and lawyers to sign.
Perfect for paying off a congressman who can trade on inside info
Perfect for paying off a congressman who can trade on inside info
Don't bring reason or understanding of trading to this debate! We know he's guilty!!!!
Why not both?
I would bet $495 that "LUCK" had nothing to do with it.
No fluke here...definite insider trade.
There is no such thing as insider trades any more. They are just more informed traders.
Behold, the EMH in all its glory. It's a Free Market, and you ain't in it.
it's a big club and we ain't in it.
https://www.youtube.com/watch?v=i5dBZDSSky0
I have 90 gold miner options that close january 2017 i bought at 5 cents as well.... Hoping for the same POP!
Is it going to take a year to see the miners explode? I got 5 on it.... we will see!
I wonder who wrote those options? Probably a 20 something with a little account that thinks he knows everything about trading. After all he/she would be a precious Snowflake.
I'm sensing a micro-aggression. Is there a safe space here?
Almost certainly someone writing a covered call trying to squeeze income out of his/her holding. Literally kicking his own ass this morning.
Pussy. Should have bought 999 calls.
"What did he know and when did he know it?"
Sometimes I wish I were lucky as opposed to well hung (in Japanese yen terms).
Well, we'll strike you from the list of those who ought to be well hung in American judicial terms.
Was this the same guy that bought puts on airline stocks before 9/11?
The buyer's last name must have been Clinton..
Cha-ching! Surely, this trader has no inside knowledge.
"30-1 on double sixes!" Ah...the "luck" of the dice!
soooo..... $300k
on a $500 bet.
nice.
Better than horse racing (most of the time)
nice trade you lucky bastard..
He wanted to sell but pressed the wrong button and then the market closed before he....
im sure the najarian brothers will tout this as an options trade they piggybacked on friday but decided to tell noone until today
Nothing unusual here, just a wild-ass shot in the dark that happened to hit the bullseye.
Why anyone would ever buy those wasteful and expensive machines and coffee pods is curious...
I'm looking forward to the GoFundMe page for the counterparty.
Nah, my guess is that this is probably legit and just a simple case of the Law of Large Numbers.
If it was someone who truly had insider info, they'd have purchased 10,000 - 100,000 calls, not 99 and spent only $495.
Sounds to me like a lucky dude taking a one-in-a-million flyer..and it worked.
And if you look at the daily chart spike in volume from 2 weeks ago marking a bottom you can see someone buying this.
Probably a small home trader so he can easly go to jail for insider trading or some other charges.
If on the other hand this had been an institutional trader.
It's like they knew the ball would land on red 20. No gambling going on here. Just some straight-up high falutin' financierin' by fancy folks in purty suits.
And once again, the over paid losers at the SEC can't find anything to investigate, so they will focus on harassing Suzy housewife with endless compliance paperwork.
INCONVENIENT FACT: The SEC had five overflowing 11x17 boxes filled with evidence against Bernie Madoff years before he was caught. The "enforcement division" refused to take any action until they were embarassed into doing so.
hillary to going to stop this kind of thing, along with shady real estate deals and commodity future trading without margin calls it all has to stop and this is the gal to do it
Hillary's cattle futures broker?
Dear SEC, start here "BofA Merrill Lynch and Credit Suisse provided fairness opinions to Keurig Green Mountain."
How about an article about the trader who was on the other side of this trade? Someone sold the calls and either lost the opportunity to gain, or, if the calls were sold naked, they got killed by the same amount.
looking to make $495, 50 times in a row ... with only loss at $300,000.
1000 call girls for each call. Now that some call center. He doesn't need to go to heaven, you only get an option for 72 and they are the only option allowed FOREVER.
Jeez..imagine not being able to play the roulette in heaven and sleep with a new call girl of your choice on the odd day.
TYLER....That was my trade. Im the person =)
I bet it was Martha Stewart again.
Well Kenny Rogers did say - You've got know when to hold 'em....
Another prime candidate for options traders anonymous.
And gold gets pile drived along with CL this morning.
I think there is good news there. It use to be that the 'pile drives' would push down 15+ points, now they can only muster 8 ... bottom may be in.
I hope Martha Stewart saw this, shell make sure that person fries in hell.
Or else it was DHS raising phantom cash
Citadel probably on other side .... SEC sure to break the trade.
Hardly a lot money in WS terms here.
small casino chip even for retail. I assume someone sold these to him. I hope they were holding the shares behind it or they are just stupid. You can generate income selling calls but you better have shares to back your bottom.
Well let's see: Dimon, Blankfein, Asness, Cohen, Moynihan, et al. Wink twice if I'm getting warm.
"Lucky" is not probable cause. Leave Hillary alone.
/sarc
It was that long haired surfer kid in the mail room who saw the pre release announcement, he borrowed the money from his grandma.
At least he was smart enough to keep in under 100 lot. No one will notice it this way...
Good thing he only bought 99 options - I bet 100 or more would have triggered an investigation...
Could also have been a closing buyer who is just happy today that he's not on the losing side, having collected a regular premium and closed out for 5 cents to free up what little margin was left on this trade
NSA should be able to tell us where he got his information....
Nice bit of weekend cash for a Big Apple party!