“Someone thinks WM is going under. 35,000 Aug. put contracts traded at the 3 strike today, and 12,000 Sept. PUT contracts at the same strike. Both dwarfed open interest, so they’re mostly new positions. This reminds me of activity in Bear Stearns in March.” Interesting that it reminds him of Bear Stearns? This date is July 26th. Keep this in mind as I continue this theory…Very interesting.
I remember when GE was trading at $20 and a sovereign fund came in and bought huge amount then it went to 27ish (this is from pure memory so not exact but close, could find it on charts if needed) and right before the major crash in the markets someone came on to cnbc and said that he was very surprised that there was some inst. that asked for a GE option contract at $7 strike. Everyone was pretty perplexed at this and I remember talking that night with my father saying you should sell your GE position because if they have an open options contract and asked for that specifically they (MM, insiders etc) were going to take it to that $7 dollars because someone knew something. He listened to me and profited from it but I remember him calling me when it hit $9 dollars on the way down saying "holly sH**t you were right" and we laughed. it was not a funny laugh more like a nervous one. I still dont understand why those trades are not investigated, one would think that would be material to WAMU. Smells fishy to me. (no pun)
IMHO
Regards to Wamuuuus
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