21 April 2017

A Firstline Securities Limited Blog by: Dalia King

Last month, Firstline team member, Jon, reported on the potential for short selling in the T&T market.  He said: “If short positions suit your objectives, desired risk-return profile and other investment criteria, then ask your broker-dealer about their willingness to arrange options.”

Today, we’ve learnt that the person who bombed the Borussia Dortmund bus just before a Champions League match last week Tuesday (and left a red herring ‘I did it on behalf of the Islamic State’ letter near to the scene), bought 15,000 put options on the shares of the German football club the same day of his attack, betting that the shares would slump following the disaster and he would profit. Allegedly, he had hoped for multiple deaths and greater carnage. Unbelievable!

Ok,  not unbelievable because this is straight out of a James Bond movie (Le Chiffre in Casino Royale bet against the shares of an airline manufacturer and also organised the plan to destroy the firm’s prototype before being foiled by 007 and having his life threatened by angry warlords who demanded their money – the money he’d just lost on his murderous financial gamble. He then tries to make the money back by gambling in a swanky casino poker game before losing in spectacular fashion to our intrepid hero, but I digress, back to the real life murdering gambler!)

So let’s return to Jon’s March blog.

If short positions suit your objectives…
Profiting from murder and mayhem excepted.

and suit your desired risk-return profile…
All risk to others with all return to yourself will never be suitable.

ask your broker-dealer about their willingness to arrange options.
Previously it would have gone without saying but now, just to be clear: if you’re looking to strong-arm the market to go your way with a put option, we’re unwilling! Don’t bother to ask. Keep on walkin’.

It is a blessing indeed that no one lost their life in this fool’s scheme. Things could have turned out so disastrously differently.

Our Friday reminder to you: “Do not value money for any more nor any less than it’s worth. It is a good servant, but a bad master.” – Alexandre Dumas

Have a great weekend everyone!
Sources and reference links if you’re interested:
Bloomberg article on Sergej W, the bus attacking, short selling criminal


YouTube video on Short Selling / Put Options in Casino Royale…with some 9/11 conspiracy (or not) theories thrown in

Jon’s short selling blog 

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