The following is the OptionBT sighting of
"Ride the Tiger 2 (RT2)".
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"Ride the Tiger 2 (RT2)"
Position Description  :
Position taken   :
Eleven Months out,
Vertical Bull Call Spread for Debit,
Long the 05 Sep 1100 Calls (150 cnt) and Short the 05 Sep 1175 Calls (150 cnt),
No Margin required,
Long Calls in the money by 42 points on Close (Oct 06,2004).
Short Calls out of the money by 33 points on Close (Oct 06,2004).
September 16,2005 / Settlement = 1232.79
Credit or (Debit)   :
Net = max potential of +$489,000 if all options expire in the money.
break even (if held to settlement) at SPX = 1143.05
All options settled in the money for Cash , NET = +$489,000
Comments   :   "Ride the Tiger 2 (RT2)"
"Ride the Tiger 2" is a repeat performance. Look up the BfHoF entry called "Ride the Tiger"
which was sighted on October 05,2000. This is almost an exact duplicate (except the 2000 examples
uses puts). The similarities are
remarkable. Both positions were put on in early October. "RT" was October the 5th of 2000 and
"RT2" was October the 6th of 2004. In both examples "RT" bought 150 pairs.
"RT" from 2000 brought home $513K (using puts) and this
time "RT2" is after $489K (using calls).
We will have to wait and see if the magic still works. What is interesting to speculate on is
whether "RT2" is looking at a similar market indicator that motived him in 2000 or is it
just that October is his favorite month to put on a $600K+ debit position.
"RT2" was good as gold before (in 2000) so let's hope he is right again.
As of November 15,2004 if this position were closed COB at the bid and ask,
"RT2" would be up $90,000.
"Ride the Tiger 2" was up to the task. Only 32.79 points up however.
Since this is a repeat performance we have to salute this repeat winner.
These across the mark spreads are the origin of the "ride the tiger" name.
This time the rider won. The next time the Tiger may win.
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