The following is the OptionBT sighting of    "Holy Smokes".
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Title   :   "Holy Smokes"
Position Description   :
     Position taken   :     Mar 29,2001.
     Fifteen Months until near month puts expire,
     At the Money long (02 Dec 1150)puts, Short out of the Money(02 Jun 1050)puts,
     No Margin required.
     Vertical Bear Put Spread plus calendat spread of 6 months delta on the legs.

     Expiration/Settlement    :    June 21,2002 / Settlement = 991.33

Count   :                           400 Long Puts / 400 Short Puts
Credit or (Debit)   :            ($1,808,000)
Margin   :                          None.
Results   :                          Net = $2,512,000 (If position closed COB June 20,2001 (thursday)
                                                                      when 02Jun1050 were due to expire.)

Comments   :  "Holy Smokes"
  "Holy Smokes" is the essence of a master trader. On the day when "H.S." put on this trade (March 2001) the SPX closed at 1147.95. By the time the expiration of the near month puts (June 2002), the SPX had declined to around 1000. Initially "H.S" combined a 100 point vertical bear put spread and a six month calendar spread to achieve a break even point of SPX = 1104.

This means "H.S." only needed a decline of 43 points in the next fifteen months for this position to go into the black. It did a lot better than just go into the black.

In fact "Holy Smokes" is very special. It is rare thing to capture a professional at his best.

It is impossible to determine when "Holy Smokes" got out.
If "H.S." closed this position when the near month puts expired, he would have netted $2,512,000 or about 39% above his $1.808M initial investment (over the 15 months).

Taking a closer look at June of 2002 we see that the 02Jun1050 puts expired at $42. Remarkably this is less than the $60 "H.S." received when he sold them short initially in March of 2001. This means that not only were the long legs of this position profitable, but the short legs were profitable as well.

This is a marvelous example of a trader that knows his market. "H.S." was spot on to think that the market would decline and picked the place where the SPX would be fifteen months out.

Congratulations "Holy Smokes", for a truly remarkable performance.

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