The following is the OptionBT
"Double or Something".
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"Double or Something"
Position Description   :
Position taken   :     May 30,2001
Nineteen Months out,
200 point vertical bear put spread for debit,
No Margin required,
Short side of put spread out of the money by 148 points on Close on Day of the Trade,
Long side of put spread in the money by 52 points on Close on Day of the Trade.
December 20,2002 / Settlement = 891.11
Credit or (Debit)   :
None (Long Strike > Short Strike)
Comments   :   "Double or Something"
"Double or Something" sits at the top of the leader board. He has patience, endurance,
and is now more wealthy than he was. He is probably good looking too, which means I'm really
envious of this guy. The wonderful thing about having lots of money is doing stuff like this.
When "DS" first put on this trade, some thought (and I was one of them)
that "Double of Something" was
having a legally blond day. When your view is nineteen months deep, you must have
courage to go with your convictions.
In this case that was $10m worth of courage and conviction.
It is true that the break-even
was up near 1340 ( closer to the long side at the time the position was taken ).
However, the fact is that the SPX settlements
never closed higher than the 1288.23 (which was the May 2001 settlement)
from the time the position
started until it closed.
"Double or Something" was always headed in the right direction.
It is hard to convince yourself that $10M is the right amount to risk, but that
$20M payday is really sweet.
I just hope that "Double of Something" shows up again. I'll try be a little more
attentive next time.
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