TERRA NOVA and PC QUOTE News flash
What do you think of this press release that was forwarded to me?
pcquote.com
Is Terra Nova now going to directly compete with its branch offices for customers by filling the business from PC Quote? Are they going to have cheaper rates than MB Trading and others? Why would this business not be directed to its branch offices? I guess greed and Terra Nova has raised its head again. Jim Porter, the current head of PC Quote, made a name for himself when he was the head of the First Options division of Continental Illinois in 1987, and the crash cost them a giant debit from an OEX Trader named Hwalin Lee. The debit was in excess of 50 million, caused by selling naked out of the money put options according to the Wall Street Journal story. I always keep a clipping of the Wall Street Journal story in my briefcase dated November 13th, 1987, with a heading of Trader Involved in Big Losses Incurred by Continental Illinois Unit is Identified, written by Jeff Bailey and Scott McMurray. I show this to young traders when they ask me why shouldn't they sell naked puts in a bull market? What can happen? Read the story. The result was it caused First Options to have to be sold to Spear, Leeds and Kellogg.
Selling naked put options also caused Victor Niederhoffer to blow out and go debit. He was well known as one of the top speculators around, check out the following CNNFn story:
cnnfn.com
I guess PC Quote must be desperate for something, their stock (symbol PQT) is only trading at 1 9/16ths. That is quite below its 52 week high of 5 points. |
