this comes pretty close to the AIG situation - would be interesting to see how much other banks have profited from those bailouts like Goldman and JPM or Barclays who stole billions from Lehman.
2. VIX Call Trading Jumps to Record in Bet Index Drops - basically 2 spreads were set up jan and Feb 22.5/ 25 call spreads it may be related to the Goldman top 4 trade recommendation to go short volatility for DEC 2010 and 11 variance swaps at 28 with a target of 21.
By Jeff Kearns
Dec. 3 (Bloomberg) -- Trading of options on the benchmark index for U.S. equity derivatives surged to a record in a bet that the so-called VIX may decline in the next two months.
“It looks like they’re trying to short the VIX in January and February,” said Dan Deming, a VIX options trader at Stutland Equities LLC in Chicago. “They’re selling the call spreads, so that would indicate they think it’s going to be under pressure.”
More than 634,000 calls to buy futures on the VIX, as the Chicago Board Options Exchange Volatility Index is known, traded today, six times the four-week average. Eighty-seven percent of those contracts changed hands as part of two spread trades, according to data compiled by Bloomberg. The calls were probably sold, meaning the traders who initiated the transaction were betting the VIX would decline, Deming said.
The VIX increased 6.3 percent to 22.46 today as the Standard & Poor’s 500 Index slipped 0.8 percent. January futures added 1.7 percent to 26.65, while February contracts were unchanged at 27.70. The index has averaged 20.29 over its two- decade history and has tumbled 72 percent from a record 80.86 in November 2008.3. One sick thing about all this Bernanke rehiring is that the same guys chairing this committee's have worked on the deregulation of markets from Dodd to Frank many of these guys need to be sacked as well and its not a party issue as Clinton was a big part of it as was Bush.Clinton's aids are now the aids of Obama. DC is contaminated by the Rothschild/ Rockefeller boys -power, money and sex is too hard to resist for most people - its only a matter of price. Being fair one also has to say that Mainstreet was neglecting their part and had a loose hand in acting. Brainwashing and a cozy feeling that things got better for them made them very reluctant. That is how the system is supposed to work - even the Romans knew that as they said 'bred and games for the masses' - still works only that you can wash their brains much more efficient with the TV.