17 replies to this topic

[HiFiGuy]

Is this source reliable?

There are all kinds of rumors floating around, most of which are completely bogus.

That's good question. I've found their information to be generally well sourced, despite the name. However, I have not been able to find any option information on the DJ Euro Stoxx 50. Its not traded on the CBOE or Euronext. The related ETF is "FEZ", but the options volume there is miniscule.

Anyone have raw option data to confirm the story?

[Bob-C]

Is this source reliable?

There are all kinds of rumors floating around, most of which are completely bogus.

That's good question. I've found their information to be generally well sourced, despite the name. However, I have not been able to find any option information on the DJ Euro Stoxx 50. Its not traded on the CBOE or Euronext. The related ETF is "FEZ", but the options volume there is miniscule.

Anyone have raw option data to confirm the story?

Edited by Bob-C, 27 August 2007 - 07:32 PM.

[Bob-C]

Hi kaiser soze, good to hear from you, Thanks for your comments and for your excellent insights and information. Good luck on your trades. Bob

[kaiser soze]

Is this source reliable?

There are all kinds of rumors floating around, most of which are completely bogus.

That's good question. I've found their information to be generally well sourced, despite the name. However, I have not been able to find any option information on the DJ Euro Stoxx 50. Its not traded on the CBOE or Euronext. The related ETF is "FEZ", but the options volume there is miniscule.

Anyone have raw option data to confirm the story?

I found more information.

THIS IS OLD NEWS

Somebody bought a lot of puts on Aug 15th and the markets did have a mini-meltdown on Aug 16th before the fed came riding to the rescue.

Eurex lists options on the DJ EUROTOXX 50 and I looked up the option chains. There is no such big block on the open interest of the Sep series so whoever bought them has probably closed them already.

[Bob-C]

Is this source reliable?

There are all kinds of rumors floating around, most of which are completely bogus.

That's good question. I've found their information to be generally well sourced, despite the name. However, I have not been able to find any option information on the DJ Euro Stoxx 50. Its not traded on the CBOE or Euronext. The related ETF is "FEZ", but the options volume there is miniscule.

Anyone have raw option data to confirm the story?

Hi HiFiGuy, see my reply to you on the previous page regarding the continuing deterioration of the market infrastructure. Also, see my reply to SB.

Cheers,

Bob-C

Edited by Bob-C, 27 August 2007 - 07:49 PM.

[syman]

POSSIBLE PRINT ERROR. ON MY TRADESATION WINDOW I SEE ZERO TRADES ON 95,94,93,90 STRIKE PRICES

[Bob-C]

Thanks bob-C for bringing this to our attention. The Eurostoxx puts are newsworthy but interpretation can be tricky.

Those who bought huge lots of Eurostoxx puts in early June definitely knew something and probably made out handsomely by mid August.

Two scenarios :

Scenario A : TAPE PAINTING ala Michael Meehan in the 1920's only in reverse this time. For those who are not into market history, Michael Meehan was pool operator/specialist trading in RCA stocks and manipulated it to perfection. Once Meehan and his buddies had accumulated huge positions in RCA stock, they traded huge blocks of stock among themselves for substantially elevated prices. When the higher price along with the huge block trade went out on the ticker, people were convinced that strong accumulation was taking place-so they bought in-only to be distributed to.

For those who bought the Eurostoxx puts, there has got to be a counter party who was a buyer. Today, options are monitored closely by a number of services for information. So, selling hysteria can be induced by a few big players exchanging these options among themselves. A canard basically.

Scenario B : The Put option purchases are to be taken at face value. Someone with superior information is acting on this piece of information.

Scenario A will result in the market galloping higher on a new wave of short-selling and put buying while scenario B will see the market dropping a lot.

If one places any credence at all in either, the safe trade is to buy an ATM straddle or strangle.

Hi kaiser soze, nice to hear from you. Thanks for your nice comments and for your excellent insights and information.

Good luck on your trades.

Bob-C

[Bob-C]

Hi everyone, I was right on target with my "LOB!!! posts" based on the deteriorating market infrastructure. Keep up the good work Bob!!! Cheers, Bob-C