The following is the OptionBT sighting of
"On the Nose".
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"On the Nose"
Position Description   :
Position taken   :     November 20,2002
1 Year + 1 month out before Dec 2003 calls expire,
Vertical Bull Call Spread for "debit",
Long side at the money, short side +50 points out.
Bought 175 of the 03Dec900 Calls, Sold 175 of the 03Dec950 Calls.
Dec 19,2003 / Settlement = 1091.61
Credit or (Debit)   :
No Margin Required (Long Call Strike < Short Call Strike)
+ $455,000 ( SPX closed above 950 at Dec 03 Settlement)
Comments   :  "On the Nose"
"On the Nose" is very precise. He knows that the most efficient way to
do a bull spread at the money is to buy the at the money call and sell
the higher strike on the day that the SPX has just crossed the lower strike.
"On the Nose" bought the
long 900 calls and sold the 950 calls precisely as the SPX was
crossing 900 on a big up day.
"On the Nose" thought that a settlement fifty points on the up side a year from
the date of this trade was no big deal. It wasn't even a stretch.
All that "OtN" wanted came to pass. This trader achieved a
double for himself.
The data set which revealed this
position was captured data set "Nov 20 2002 @ 12:25 ET". The end of the day data
set would still have revealed it but it was a little less obvious.
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