The following is the OptionBT sighting of
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Position Description   :
Position taken   :     April 15,2003
Two Months out,
100 point vertical bull call spread for debit,
100 point vertical bull put spread for credit,
Margin required per pair for put spread = $10,000/pair,
Short side of bull call spread deep in the money by 90 points on Close on Day of the Trade
June 20,2003 / Settlement = 1001.56
Credit or (Debit)   :
$10,000 per pair * 20,000 for the put spreads = $200,000,000
Net = +$34,000,000 (if allowed to settle for cash)
"Big Kahuna" deserves the name.
The Big Kahuna is the Hawaiian god of surfing. This BigFoot has a lot of wind behind
him, because he convinced someone to put up some big bucks for a short term gain.
It might have been a post Iraq War thing, who knows. The big news is the confidence
level. Not only did this BigFoot buy the deep in the money call spreads, but he also sold the
puts. What a "Big Kahuna".
Let's assume some good research occured here and praise the $34M net on his $200M
margin in two months. Good going. See you in Hawaii this summer.
It is possible since "Big Kahuna" owned
the 20,000 03Jun700 Calls and was short the 20,000 03Jun800 Calls
that his broker gave him credit for the difference and reduced his
margin requirement for the put spreads a little, although only a good friend would reduce it to zero.
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