London traders hit $500M jackpot when oil went negative
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Re: London traders hit $500M jackpot when oil went negative
#2Re: London traders hit $500M jackpot when oil went negative
#3I think most people saw the opportunity, but just didn't know how to properly capitalize on it. At least that's where I was. I wasn't going to take delivery of any oil, that's for sure. At least nothing that stood to make anything significant from. Then, there was also the whole contango thing too.
Re: London traders hit $500M jackpot when oil went negative
#4Interestingly enough crude options went zero bound for nearly half a day before market makers started to realize their quotes were off. One of the most thrilling experiences trading in a very long time.
Re: London traders hit $500M jackpot when oil went negative
#5I think most people saw the opportunity, but just didn't know how to properly capitalize on it. At least that's where I was. I wasn't going to take delivery of any oil, that's for sure. At least nothing that stood to make anything significant from. Then, there was also the whole contango thing too.
It seemed like every retail-trading angle was a losing proposition.
Re: London traders hit $500M jackpot when oil went negative
#6Matt Levine's take (author of the Bloomberg column Money Stuff):
https://www.bloomberg.com/opinion/articles/2020-08-04/some-p...
Re: London traders hit $500M jackpot when oil went negative
#7I really wonder if those guys really created $500M worth of “value” for the rest of the world. Because if they didn’t, it means it’s theft...
Re: London traders hit $500M jackpot when oil went negative
#8There's an episode of MacroVoices that was recorded in real-time as prices were going negative. You can hear the pain in Erik's voice as he realizes how much profit he missed out on.
Re: London traders hit $500M jackpot when oil went negative
#9I really wonder if those guys really created $500M worth of “value” for the rest of the world. Because if they didn’t, it means it’s theft...
A lot of people gambled and they won.
Re: London traders hit $500M jackpot when oil went negative
#10I think most people saw the opportunity, but just didn't know how to properly capitalize on it. At least that's where I was. I wasn't going to take delivery of any oil, that's for sure. At least nothing that stood to make anything significant from. Then, there was also the whole contango thing too.
It seemed like every retail-trading angle was a losing proposition.
Idunno, my oil ETF shares are still up 40% from March so.....
OIL closing was bullshit, though