The following is the OptionBT sighting of    "Pass the Taters".
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Title   :   "Pass the Taters"
Position Description  :
     Position taken   :     May 21,2004
     Twelve Months out,
     Vertical Bull Call Spread for Debit,
     Long the 05 Jun 1100 Calls (250 cnt) and Short the 05 Jun 1200 Calls (250 cnt),
     Margin required,
     Long Calls at the money (Close May 21,2004 was 1093.59).
     Expiration/Settlement    :    June 17,2005 / Settlement = 1222.68

Count   :                      250 pairs
Credit or (Debit)   :    ($1,115,000)
Margin   :                   None. (long call strike less than short call strike)
Results   :                   Net = max potential of +$1,385,000 if SPX settlement above 1200.
                                        break even (if held to settlement) at SPX = 1145
                                 All options closed in the money and settled for Cash.

                                 NET = +$1,385,000


Comments   :   "Pass the Taters"

  Now you might think "Pass the Taters" has to do with something (dare I say it) that a New Yorker might think a person from a small town in Texas might say. This is not the case. The point of choosing this name is that "PTT" is not a follower of the low carb craze or any other craze for that matter. Here is a guy who sees the glass half full at this time and is willing to put down a million one to prove the point.
This long term $1.1M investment will only become completely fulfilled if the SPX closes above 1200 by June of 2005. "PTT" will need 45 points up from where the market closed on the day of this trade to break even. This shows that it is all about perspective. The other player who covered "PTT's" bet is equally sure that the market will go down and stay down.

"PTT" is a good example of a individualist that stays ahead of the curve and doesn't whimp out and ( I am speculating of course ) feels the time is right to roll the dice.
Let's hope that this demonstration of courage ( assuming he is playing with his own money and not someone elses ) is rewarded. In the mean time let's also hope that any BigFoot want-a-be watching this candidate for the Hall of Fame remembers that the BFHof is an educational venue and not a "how-to" infomercial.
Please note the con and the pro of this example:
      1) "PTT" is walking a high wire without a net.
      2) "PTT" expects to double his money in the next twelve months.
Doesn't seem fair, does it?
Even so "Pass the Taters" has a chance.

End Game:

The high wire analogy was a good one. We don't know if "PTT" bailed early but it was a squeeker for sure. The SPX closed only 22.68 points above what "PTT" needed to fulfill his maximum profit. Congratulations for your courage and maybe wisdom. Either way the money is good.


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