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Author Topic: The Bull Gores The Bear  (Read 1917 times)
sunnankar
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February 14, 2013, 05:41:48 PM
 #1

Ouch!





If the flash crash and puts were initiated by the same person then any estimates on losses?

Looks like someone took it on the chin. Sometimes you get the bear and sometimes the bull gets you!


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February 14, 2013, 05:53:48 PM
 #2

^ so brutal but i love it

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February 14, 2013, 08:49:02 PM
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Booyah Baby!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Cheesy
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February 14, 2013, 08:52:11 PM
 #4



And I thought it is pigs getting laughtered

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February 14, 2013, 08:57:37 PM
 #5



And I thought it is pigs getting laughtered

Haha! Made me think of South Park.

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MPOE-PR
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February 14, 2013, 08:57:53 PM
 #6

Ouch!

If the flash crash and puts were initiated by the same person then any estimates on losses?

Looks like someone took it on the chin. Sometimes you get the bear and sometimes the bull gets you!

Something like 500 BTC from the looks of it neh?

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February 14, 2013, 09:09:36 PM
 #7



And I thought it is pigs getting laughtered

Haha! Made me think of South Park.


hey humanitee.   there ain't no way your puny green candle can match up to this one  geezus almighty:

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February 14, 2013, 09:12:02 PM
 #8

hey humanitee.   there ain't no way your puny green candle can match up to this one  geezus almighty:



Bossman wants his candle by 7:00. I got 3 more hours of waxing left.

Bossman gonna be real happy, yes he is.

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cypherdoc
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February 14, 2013, 10:07:38 PM
 #9

darn thing just keeps getting longer and longer:

sunnankar
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February 14, 2013, 10:10:23 PM
 #10

Ouch!

If the flash crash and puts were initiated by the same person then any estimates on losses?

Looks like someone took it on the chin. Sometimes you get the bear and sometimes the bull gets you!

Something like 500 BTC from the looks of it neh?

Well, I suppose I should have rephrased the question. If they tried to recover their bitcoin stash then what are the estimated losses?

Otherwise, someone might be on the sidelines now.

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February 14, 2013, 10:11:10 PM
 #11

darn thing just keeps getting longer and longer:

Don't worry; you will get used to it.

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February 14, 2013, 10:37:02 PM
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1D7FJWRzeKa4SLmTznd3JpeNU13L1ErEco
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February 14, 2013, 11:18:13 PM
 #13

Ouch!





If the flash crash and puts were initiated by the same person then any estimates on losses?

Looks like someone took it on the chin. Sometimes you get the bear and sometimes the bull gets you!



Can someone explain the MPEx numbers and what it implies here?

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February 15, 2013, 11:19:29 AM
 #14

Those price don't mean anything other than some people have gone leveraged short on Bitcoins. And no, the flash crash was not initiated by the same person who got PUTs.

I got a few myself and I know who got most of them.

But it seems we will reach a higher top before the bubble pops and might have been better off waiting until next month. Now let's watch the price skyrocket further after everyone feels secure and validated in buying more.
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February 15, 2013, 11:17:50 PM
 #15

Can someone explain the MPEx numbers and what it implies here?

The first column are bids/asks. The second last trade. The third min/max for the month. The fourth volume.

So the image shows someone loading up on puts (5+3+2+2k ~= 12k BTCs worth) at prices in the .05 to .15 range. You know it must be buys because the prices are so close to the high range. Closing those positions is likely to result in a loss (a maximum of maybe 1-2k BTC worth, but in practice probably closer to 500 or so). The person buying was speculating that the trend will break and BTC price collapses. Needless to say it didn't go their way.

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February 16, 2013, 02:05:48 AM
 #16

Can someone explain the MPEx numbers and what it implies here?

The first column are bids/asks. The second last trade. The third min/max for the month. The fourth volume.

So the image shows someone loading up on puts (5+3+2+2k ~= 12k BTCs worth) at prices in the .05 to .15 range. You know it must be buys because the prices are so close to the high range. Closing those positions is likely to result in a loss (a maximum of maybe 1-2k BTC worth, but in practice probably closer to 500 or so). The person buying was speculating that the trend will break and BTC price collapses. Needless to say it didn't go their way.

Help a n00b understand options / hedging strategy a little better:
So this activity displayed in the picture (buying put options) can be viewed as a hedge against being long in the actual BTC market?

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Namworld
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February 16, 2013, 03:14:29 AM
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It could also represent a hedge. It is highly leveraged trading. The option contracts maker usually sell for a low amount some options which may be worth a lot less or nothing at all at current market prices if redeemed. However, he puts BTC as collateral for those options. The one buying contracts pays that premium but pays a lot less than the collateral. If market reverse and moves a lot, the option buyer might get a lot of that collateral when he paid a fraction of it. However, if market doesn't move or move in the other directions, he stands to lose a good part or all of the fraction that he paid.

So the one creating contracts might put for example some collateral for puts at 23 USD/BTC when price is at 28 and sell those for ~0.05 BTC each. If price doesn't fall under 23, he made 5%. If however the price fall to 21 USD/BTC for example, the buyer may get 0.10 BTC per contract for 0.05 he put up. If price falls further down, he stands to make a lot more.
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February 16, 2013, 09:19:52 AM
Last edit: February 17, 2013, 04:41:25 AM by MPOE-PR
 #18

Can someone explain the MPEx numbers and what it implies here?

The first column are bids/asks. The second last trade. The third min/max for the month. The fourth volume.

So the image shows someone loading up on puts (5+3+2+2k ~= 12k BTCs worth) at prices in the .05 to .15 range. You know it must be buys because the prices are so close to the high range. Closing those positions is likely to result in a loss (a maximum of maybe 1-2k BTC worth, but in practice probably closer to 500 or so). The person buying was speculating that the trend will break and BTC price collapses. Needless to say it didn't go their way.

Help a n00b understand options / hedging strategy a little better:
So this activity displayed in the picture (buying put options) can be viewed as a hedge against being long in the actual BTC market?

For hedging against BTC FX risk, see these older posts of mine here.

For hedging as a miner, against both FX risk and diff risk, see this article: How to hedge as a miner.

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