Friday, March 14, 2008

bsc option stuff

this past tuesday, when bsc was trading in the mid $60's, there was huge put volume in the march $30 strike. over 50,000 contracts traded that day at an average price of 15 cents a contract.

those puts are now worth over $5.00. clearly someone had a sense that one or more of the other big investment banks would no longer act as a counterparty.

does this sound like something gs, which did in fact pull the rug from doing business with bsc, would do?

Position: long gs calls

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