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Million dollar bet on the SandP

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Super Contributor
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19 REPLIES 19
Super Contributor
i dont have skottel tv.
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Super Contributor
?? what's that got to do with a trader's bet on the S&P?
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Super Contributor
I suggest you go on strike and demand one?
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Super Contributor
yes! that's what everyone is doing in SA nowdays!
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Super Contributor
Ok, so seems there is no thoughts on this trade... hmmm
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Not applicable
Koos have you got a skottel braai? that also works...
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Super Contributor
:-) Ja that i got, doing a bacon brunch right now!
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Super Contributor
so if he gets it right, his one million will be worth 25 million...its a profitable trade, even if he is willing to risk the whole million...
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Super Contributor
I would like to know who this is and how this trade will end. I see Allan Greenspan is saying a correction will come. this will end badly for our friend the trader if that were to occur.
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Super Contributor
he has factored in the correction and waiting it out till year end.
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Super Contributor
but then he is thinking it will not be down this much by december clearly? "That means that if the S&P drops 15 percent into the end of the year, this trader will lose more than $100 million."
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Super Contributor
RAMS, are you expecting it to correct strongly and then recover to less than 15% drop to what we have now before december?
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Super Contributor
I am thinking and quite sure that if we get a 'substantial' correction in the months to come, we will not be at current levels or even 15% off these levels at the end of this year. it will be 20-30-? down and take months to recover to these levels? what do you think?
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Super Contributor
This person has a strategy in place, he will not lose 100 million, he has the risk reward reward part worked out...I dont know if the market will fall and by how much it wont or will fall...whatever happens, up or down, i will make money from it...
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Super Contributor
so then CNBC is writing garbage about him loosing that money?
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Super Contributor
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Super Contributor
but it needs to recover to eliminate the paper loss otherwise it will turn out to be a real loss if they close the position out below that level.
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Super Contributor
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Super Contributor
ok, but that doesn't mean its a very safe strategy, they can make a loss and if they don't close out below they don't, but that doesn't mean that options strategy is designed to limit loss, because then they wouldn't have the paper loss in the first place?
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