The following is the OptionBT sighting of    "The 15% Solution".
Go to Description Section
Title   :   "The 15% Solution"
Position Description   :
     Position taken   :     May 23,2002
     June 20,2003 (settlement) is one year out.
     This is a long / short bear call spread for credit.
     Long the 03Jun1350 Calls.
     Short the 03Jun1300 Calls.
Expiration/Settlement    :
     June 20,2003 / Settlement = 1001.56
Count   :                           1000
Credit or (Debit)   :            $750,000
Margin   :                          $5,000,000
Results   :                          made the full credit of $750,000

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Comments   :   "The 15% Solution"

With the S&P 500 Index (SPX) closing at 1097.08 on the day of this trade, this BigFoot thought that the upside risk was low.

"The 15% Solution" argued at the time that 200 points up (or +18% on the SPX) was not going to happen in the coming year. He was right.

There is a lot of margin on the line here, but remember, "If you guess right it doesn't matter".

In hindsight "of course" this was a great move, but at the time the market had been much higher a year earlier in June of 2001. There is more research going on here than is obvious at first glance. The prediction that the post 9/11 revcovery would take longer than anticipated was correct indeed.

"The 15% Solution" is a professional worthy of the BigFoot Hall of Fame.

The $750K made on his $5M margin is an example of how if you have money you can make money (that is, if you know what you're doing).

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