The following is the OptionBT sighting of    "Long Tom".
Go to Description Section
Title   :   "Long Tom"      Position taken   :     January 02,2001
Position Description   :
     December 20,2002 (settlement) is two years out.
     This is a long / short bear put spread for debit.
     Long the 02Dec1600 Puts.
     Short the 02Dec1500 Puts.
Expiration/Settlement    :
     December 2002 / Settlement = 884.36
Count   :                           60
Credit or (Debit)   :            ($396,000)
Margin   :                          none (long put strike > short put strike)
Results   :                          $204,000

Comments   :   "Long Tom"

The reason "Long Tom" is so special is not the count (which is a meager 60), but the unusually long time until settlement which is almost two years. We now know that 1500 was too tall of an order for the market in 2001 and by 2002 "Long Tom" would have seen his spread converge giving him ample opportunity to cash out and not very much reason to hold to the end. Yet, somehow I think this conservative will hold to the end.
"Long Tom" spent $396,000 in cash to put on this spread. Maybe he was looking for a way to tell the kids that the money was unavailable for the time being.
I'll be watching next year on the first trading day to see if "Long Tom" does it again.
My guess is that he probably will. Although the situation with the kids may have changed by then, what won't have changed is that 25% per year will still be a good thing.

With the close of the SPX in December 2002 well down into the 800's "LT" wasn't even close to having to cover.
Good for you, have a Merry Christmas , "Long Tom".

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