German luxury carmaker Porsche has made 1 billion profit on selling cars in 2008, and 6.8 billion on trading options. Most of the option trading revenue is coming from cornering the market in Volkswagen shares.
Powerplay in derivative markets
Powerplay in the financial markets has been defended by “hedging” themselves against a rise in shareprice of VW shares. Seriously doubt it, but guess they have decent lawyers. They need those to fight off their victims.
Today mister Holger Härter, CFO, announced a EUR 400 million profit on trading options in the Dax – excluding Volkswagen. That’s a hell of a profit on a business which isn’t your own. There’s no industrial logic behind “exploiting small price differences between options”. Food for lawyers. Possible that they have been trading DAX index options, rising on the back of the VW boost. Quoting CEO Wendelin Wiedeking: “We are not speculators – we never have been and will never want to be”. Right.