Since the Bear Stearns collapse, there's been an ever increasing amount of talk about speculation and the impact that option traders and commodity, specifically, futures commodity, traders have on the markets. Well, this article certainly helps to support such arguments pointing-out that some investors made-out like bandits on the Bear collapse with a monstrous options bet not even the most bearish investors could have pulled-off without loosing a hell of a lot of sleep.
Apparently, some hedge fund companies placed million-dollar bets on put options with strike prices less than half of Bear Stearns' market share price at closing that day. If this doesn't smell like insider trading, then I don't know what does. The fact that this is the top headline today, the ones who were on the winning side of these trades are definitely sweating right now. You can be sure that regulators are going to be using a microscope in their investigation and if those gamblers (I mean traders) didn't lose any sleep before, then they're sure going to now!
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