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I'm not a fund manager - and only took a few classes, so I'm probably way off in this line of questioning... Do you think he and potential compatriots gained a

I'm not a fund manager - and only took a few classes, so I'm probably way off in this line of questioning... Do you think he and potential compatriots gained additional exposure through the options chain? I'm still struggling to understand how there were $Xm+ weeklies significantly OTM on TSLA and other names the Monday of expiry. Could it be seen as a good investment strategy if you had exposure in other vehicles that just needed to cover the premium (assuming the greeks were right)?

lordnacho 5y ago
I haven't looked at the data but he could certainly have bought some kind of structured product to enhance his bet further, which would turn up in the options. Normally the bank would look at your total position and work out from there what they thought your daily risk was, and thus how much margin to ask for. What isn't so easy is to spot the massive whale who's taken the same position with all the banks, so big that he moves the market the wrong way when it goes badly. Then your risk model is pretty useless.
deleted 5y ago
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