Hedge funds are reluctant to accept their losses on the VW short squeeze. The German sportscar maker Porsche squeezed billions out of the financial Heuschrecke Not used to losing a battle against a bigger fish, hedge fund managers want the money back. Lawyers have been put to work to sue Porsche for manipulating the market.Read more
I’m not a big fan of deriving directional conclusions from the option market. Put-Call ratios and open interest figures are mainly a source of misinterpretation. However, something strange is going on in the option prices at the moment across Europe. The curve is extremely flat compared to historical prices. Out-of-the-money puts are cheap compared toRead more
Dozens of psychologists, economists and behaviourists have studied the cause of several stock market panics. They are still graduating on the 1987’s crash and panic selling. Time for a change. The current devastating crash is one of history’s worst. However, the most interesting phenomenon is the complete absence of panic. Sure, investors may have troubleRead more
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 sharepriceRead more
Big news in small Amsterdam. Option market maker All Options buys rival trader Saen Options. I noticed a steep rise in hits on this post thanks to google yesterday. Yet, a little inside knowledge doesn’t make a difference as none of them are listed. All Options made a killing in 2007. It did their homework better thanRead more
