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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Joe Stocks who wrote (85653)	8/29/2007 2:51:47 PM
From: benwood	Read Replies (1) \| Respond to of 110194

I suspect that these huge options trades -- the Bin Laden trade and others -- are from hedge funds or other large, damaged entities (state/county pension funds?) going "all in" -- that is, going for broke. Either they make up their losses and create a huge payday for themselves (or cover up their mistakes and losses), or they go bust and walk away, leaving carnage in their wake and personally no worse for the wear, since they realize they will go bust (or be revealed) anyway in short order. Nothing like a death rattle from multi-billion dollar funds to stir things up. Just a thought about an unintended byproduct of trying to keep dangerous entities afloat for a while longer.

To: Joe Stocks who wrote (85653)	8/29/2007 3:48:51 PM
From: Haim R. Branisteanu	Respond to of 110194

Just think simple - I have a huge stock portfolio and I am facing redemptions - do not want to sell equities - so I am selling covered call and have the cash for redemptions. September 1st arrives and more money comes in from 401K pension funds etc. I have the cash to close positions even partially. Next month roll the remaining over - October 1st arrives - do same like in Sept 1. to mitigate small market fluctuation of 30 to 40 points I have my black box guys doing the work end story market up or down I am a happy camper