Quote:
Originally posted by willcls
sidenote: the options activity in bear sterns today was really crazy. over 50,000 march 30 puts traded. bear last traded at $64. 1 of 2 reasons for this activity. people expect it to drop over 50% in a week and somebody wants to get out or there is an unbelieveably upside move coming in the financial sector and investors have hedged themselves for a slight chance of a crash in which case they can load up on the underlying asset big time.
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OR Huge Terrorist Attack similar to 9-11. Terrorists are betting that the market will crash. That's what happened during 9-11 terrorist attack. Terrorist bought huge amount of put option on airline companies. They are making billions from the 9-11 terrorist attack.