A $2.3 Million Bet On UniCredit Unihilation

Tyler Durden's picture

Last week it was Bank of America, when someone bought $2 million in November $4 Puts, today it is the Italian equivalent: UniCredit, where someone just put on (no pun intended) a $2.3 million bet expiring in just under 4 months, that the bank will be trading far lower. Earlier in the European trading session, someone bought a standalone block of 10,000 0.9 puts, a whopper in the context of traditional volume. The sizable block purchase was more of a statement than anything. In fact, the block sent the put class abuzz, with the puts being the most active on the Milan equity-options market. Granted, it could have taken place with more leverage (i.e., lower strike), but even so, we are confident many will wonder who is this serial put buyer of doomed financials, which continue existing either courtesy of private market capital raises, or regulatory intervention which prevents their shorting to death. Incidentally, isn't put buying prohibited? After all, this is treason and stuff as per the latest directives of Securitate.

And the block trade itself:

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FunkyMonkeyBoy's picture

It was the Bernank. Same goes for the BAC bet.

LawsofPhysics's picture

If that is true, then so much for my "balls of steel" comment.

AldousHuxley's picture

CDS above 2008/2009 wides for many western banks including UniCredit.



Somebody will have to be the next lehman....too many banks with worse credit than MC Hammer in 1996

MrPike's picture

The Bernank is the one selling the puts..

slaughterer's picture

Did Muddy Waters open up a branch in Italy? 

CPL's picture

There's the break...the air is getting let out of the balloon, market should shake off a couple of points again.

malek's picture

I was thinking of Nassim Taleb...

Hugh G Rection's picture

Dont worry, the JP Morgue will buy em out.

AldousHuxley's picture

Morgans are not that nice or stupid like BofA.

JP will wait until the final hour then negotiate in the backroom for dirt cheap prices.

slaughterer's picture

The side bars on ZH today for me are one relentless stream of prostitution:

1.) Travel Girls

2.) Russian Cupid

3.)  Turkish Girls



Hugh G Rection's picture

I'm getting a different prostitute on my side bar... Glenn Beck.

IQ 145's picture

Linux Mint plus Firefox with adblocker plus; no side bars. none. zero. Computers, you too could use one if you tried.

Dick Darlington's picture

Bernank sponsored equity boner for Fraud Street, normal boner for us mortals by side bar ads full of girls.

Tense INDIAN's picture

Travel Girls are everuwhere

Spitzer's picture

anything is better then fat white biches.

Michelle's picture

If one is a CDS seller, buying puts is their hedge. So I guess we should expect a triggered credit event. Let's see if the Eurozone adopts Merkel's policy thereby banning naked CDS.

baby_BLYTHE's picture

time to open up the FED window and let every man, woman and child that draws oxygen on American soil borrow at .25 bps.

Primary Dealers, Hedge Funds and other Banks are made up of and run by human beings. Under the Constitution alone, "All are created equal" should be enough without any further legislation to justify it.

Since there is no avoiding the BIG COLLAPSE that is coming, let us just go out with a bang. Let everyone have a horse in this race.

SheepDog-One's picture

Yep I agree, just send everyone in the US a check for $100,000, why the hell not, and lets have a big going away party!

fuu's picture

$300,000,000,000,000 is a pretty large number.

SilverDosed's picture

pfffft, Trillions dont mean shit these days. Thats not even a third of a quadrillion.

Manthong's picture

Not even half the size of the vaporous synthetics market which has little to no reserves or tangible backing.

espirit's picture

Unfortunately, we the people only get to choose from the best horse at the glue factory.

slaughterer's picture

BB, opening up the Fed window to the whole planet would destroy the banks and credit companies and eventually the Fed itself.  But I am sure you are aware of that. 

baby_BLYTHE's picture

the banks are already insolvent, the banks don't (and won't) loan, we don't need a FED (nor is it constitutional), credit is evil, we will go back to a gold standard eventually once the dollar is worthless (no unbacked) fiat currency has ever lasted more than 30-50 years.

The status quo cannot be saved, just as about everyone on ZH is well aware. What I advocate is not a solution, but should be implemented based on American values and will perhaps soften the blow during the transition out from our current system.

LawsofPhysics's picture

I think that was the point, but to the contrarian side of things, if everyone stops using FRNs, you get the same result.  At this point it is simply a matter of whether you want to die fast or slow.

tekhneek's picture

just exchange your fiats for silver/gold, people are going to continue to wake up because of prices/inflation, etc. it's only a matter of time as we all already know. we can speed up this collapse and get to the price control phase the more we rally and buy silver/gold.

they will sell gold/silver that doesn't exist in the paper markets but it won't matter. silver/gold wil be unattainable by that time anyway.


IQ 145's picture

I apologize about being wrong in waiting to buy silver; today was a non-event day in New York; the bottom is in in Silver. Amazing strong market. Fire at will.

SheepDog-One's picture

The banks and credit are already destroyed.

mac768's picture

and just imagine NOTHING is happening?

Then some hedgies may call it quits..

anynonmous's picture

you are aware that the contents of the Sept 5 address to the nation was supposed to have been confidential.


Don't laugh, Obama will decree that every American who wants to, will be able to have their mortgages rewritten at the lowest available rate even if they are underwater or behind in payments. (without penalty or fear of disqualificaiton)


Now how do we play that apart from adding a few gold coins to the piggy bank

Long-John-Silver's picture

Let everyone have a horse in this race.

Who can afford a horse in these depressing times?


President Obama blamed for a starving horse in desert

Panafrican Funktron Robot's picture

To those that stayed long on their paper gold:  congrats on currently beating the SPX by a full percentage point.  Even paper gold > equities. 

traditionalfunds's picture

They snuck past the ban on shorts until you revealed them ZH!

Better watch your back! Those I-talians don't mess around.


jimijon's picture

Hey! Being of Italian descent, I resemble that remark.

monopoly's picture

Big going away party". Luv it. :)


Looks like the deep, dark correction in gold may be ending.

Panafrican Funktron Robot's picture

No joke.  Those 2.5 days below $1800 were rough!!!!!!



Long-John-Silver's picture

If Gold keeps it's 1800 handle heading into expiry next week, Shorts are going to be crushed.

Looks like all these margin hikes are putting a solid $,1800 floor under Gold the same why they put a solid $40 floor under Silver.

--Freedom--'s picture

Indeed. That was a faster recovery than I thought. Don't want to get too confident, though. My guess is, back at 1900 by middle of next week, then more margin increases.

IQ 145's picture

I was surprised also; and I'm very good at this. Be sad if I didn't learn anything after 30 years of staring at Silver price charts. Very, very strong market. It's the Chinese, (came in 2010); the support is always there, they buy the fucking dips;  Europeans, too, bought the shit out the dip. The hive mind is evolving; the numbers of people who "don't believe" anymore are increasing. The big flywheel is starting to turn. Still have years to go; in my opinion. But the great awakening is afoot. Kinda gets your attention after awhile when you realize you're getting a negitive return on your bonds and deposit accounts. Getting more peoples attention all the time.

AbandonShip's picture

I bet it's The Oracle (from Omaha) again.   He's probably hedging in case his Italian bailout doesn't go through.

Imminent Collapse's picture

Can they pay it in gold & silver?

LoneStarHog's picture

Warren Buffett must be TRADING from his BATH TUB, again.

IQ 145's picture

Hey what have you got against trading from your bath tub. We bath tub traders resent this, you know.

boiltherich's picture

Unihilation?  Clever.  But this does not mean I am giving up my campaign for the return of a spell checker here. 

DCFusor's picture

Running firefox over linux.  Spell checker built in on my end.  But when you depend on a spiel checker, you rape what you sew...I like being able to judge the literacy of the comments more easily myself.  Not many smart people can't do English properly.

Long-John-Silver's picture

I can't imagine ever going back to Windows and it's wide open worthless security.

it's like a naked blind whore in an orgy.

IQ 145's picture

Fortunate I speaka da english real good.  but yeah; use firefox on Linux; whatsamatter you love Bill Gates, or something? Get over it, he's an absusive asshole. I luvz my spiel chex. wurx guud.