The following is the OptionBT sighting of    "Big Engine Little Engine".
Go to Description Section
Title   :   "Big Engine Little Engine"      Position taken   :     September 08,2000
Position Description   :
Big Engine:
9 Months before Jun 2001 calls expire,
Vertical Bear Call Spread for "credit",
Short side at the money, long side 100 points out.
Sold 13,000 01Jun1500 Calls, Bought 12,850 01Jun1600 Calls.
Expiration/Settlement    :    Settlement June 15,2001(SPX=1206.88).
Count   :                           12850 pairs (+ 150 uncovered short calls)
Credit or (Debit)   :            $71,400,000
Margin   :                          $128,500,000 for the 12,850 matched pairs
                                        $22,500,000 for the uncovered 150 short calls (@ 100%)
                                        Total Margin = $151,000,000
Results   :                          + $71,400,000
Little Engine:
9 Months before Jun 2001 puts expire,
Vertical Bear Put Spread for "debit",
Long side is out of the money by 75 points.
Spread is 25 points. 100 point decline required to produce 100% of profit.
Bought 250 01Jun1425 Puts, Sold 250 01Jun1400 Puts.
Expiration/Settlement    :    Settlement June 15,2001(SPX=1206.88).
Count   :                           250 pairs (all covered)
Credit or (Debit)   :            ($146,875)
Margin   :                          None.(Long side strike is > short side strike).
Results   :                          + $478,125

Comments   :
  "Big Engine Little Engine" is a tale of two traders. One is the Papa Bear and one is the Baby Bear.

The "Big Engine" shown is not alone. He has an equally large identical brother position on the 7th of September (the count for the brother of the Big Engine on the 7th [not shown in this example] was long 12375 of the 01Jun1600 calls and short 13050 of the 01Jun1500 calls).The evidence that the Big Engine and his brother were short these positions and never closed them is found in the short interest numbers for these calls which rose from 5,000 to 36,000 for each of the legs of the bear spread and stayed that way until expiration.

What's even more interesting than a BigFoot that gets it right and takes home big bucks ( $71.4M on the Big Engine and $77.5M on the brother [not shown in this example] ) is the "copy-cat" which we are calling the "Little Engine".

The "Little Engine" no doubt caught site of the brother on the 7th or the Big Engine on the 8th or had a buddy in the office of the Big Engine and decided to follow suit with capital which he had on hand which was must less, but still a large investment for the Little Engine.

The Little Engine showed faith in the Big Engine and earned a triple.
This example is the escense of what BigFoot Tracking is all about.

The other lesson here is that the Big Engine somehow magically called the August SPX closing settlement of 1497.5 (one month prior to putting on his position) as a turning point which was to become the highest monthly settlement for the next two years (and then some).


  back to BigFoot Hall of Fame page