SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Naked Truth - Big Kahuna a Myth
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Earlie who wrote (76824)11/23/1999 2:29:00 PM
From: Cynic 2005  Read Replies (1) of 86076
 
Ealie/Heinz:

When the market tanks 5-10% in a short period of time, delta hedging can cause serious damage to the earnings of the big trading houses. From Oct 18 through Nov Perspiration, DUNG went-up almost 20% and many high flyers went up even more. I do not believe that all the call sellers (mostly market makers and trading houses) were sufficiently hedged. It is very likely that the likes of CMB and MER have incurred heavy losses in November. The losses are inevitable, IMO, especially since the volume on DUNG was almost 50% higher than the normal clip.

On top of this - for about 13 weeks in the quarter the banks have to deal with higher discount rates. I think first set of bad news will come form the banks this time. Just speculation on my part.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News