The following is the OptionBT sighting of    "Ride Captain Ride".
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Title   :   "Ride Captain Ride"
Position Description  :
     Position taken   :     January 17,2007
     Two years out,
     Vertical Bear Put Spread
     Long the 09 Dec 1600 Puts (550 cnt), Short the 09 Dec 1300 Puts (550 cnt)
     No Margin required,
     Close on the day of trade January 17,2007 was 1430.62
     Expiration/Settlement    :    December 18,2009 / Settlement = ????

Count   :                     550 long put options, 550 short put options.

Credit or (Debit)   :     ($4,862,000)
Margin   :                   none required

Results   :                   Net Potential = +$11,638,000 if December 2009 Settlement below 1300.0

                                       
Comments   :   "Ride Captain Ride"

The Blues Image in late 1970 released a song titled 'Ride Captain Ride'. The Chorus :
'Ride, Captain ride upon your mystery ship,
Be amazed at the friends you have here on your trip,
Ride, Captain ride upon your mystery ship,
On your way to a world that others might have missed.'

Here in January of 2007 with the SPX heading up since the middle of 2006 there appears to be plenty of wind to carry this ship far out to sea. Can the wind blow long enough for 200 more plus points on the SPX between now and December 2009, above 1600, and give the guy who filled the Captain's order his full profit and keep all the Captain's money?
Maybe the Captain has a better grasp of the future.

The other guy (the anti-Captain (the AC)) has $16.5M in margin tied up for two years which seems a bit much. So perhaps this is a shorter term play for him. The Captain seeks a max net of +$11,638,000 if taken to settlement and if the SPX settles below 1300 by December 2009.

The AC is willing to take the Captain's $4M and hopes to be able to hold on to most of it. This trader wants the market to continue to move up in the coming months. Even if the market doesn't move much he hopes the decline in time premiums will increase his profit. He probably thinks that these options being relatively near the money will be easier to off load. However there are still two years left in them and they are very expensive.

The Captain though is taking this ship somewhere on a way to a world that most have missed.



Updates: (if position closed at current value)
March 30,2007 : SPX @ 1420.86Captain +$385,000.
June 29,2007 : SPX @ 1503.35Captain -$511,500.
September 28,2007 : SPX @ 1526.75Captain -$110,000.
December 31,2007 : SPX @ 1468,36Captain +$1,243,000.
March 31,2008 : SPX @ 1322,70Captain +$4,284,500.
June 30, 2008 : SPX @ 1280.00Captain +$4,928,000.
September 30, 2008 : SPX @ 1164.74Captain +$7,095,000.


Has the Captain stayed at the helm?

Stay Tuned.

By the time late fall of 2008 had arrived, the Captain looked like a genius. The anti-Captain has either laid off these beats or is himself laid off.

With the SPX closing on October 6, 2008 below 1000 for the first time in years, the enabler, the anti-Captain, who thought the Captain a fool when he intially covered this beat is not laughing.

A little research may turn up if the Captain is going to "Heave To".
"R" not.. and wrench the last debloon from the dead anti-Captain's hand.





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