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I was a broker in 87 and advised my clients to get out or lighten up in
Sept. It never occurred to me to buy puts or go short. I was either
stupid or too busy trying to get clients out. Then again I only
expected a big correction.
I find it very interesting that the signs were there, as I well
remember, and traders missed the move or were on the wrong side. What
fooled them. I remember a 100 point decline on Friday and coming in on
Monday only to find my largest trading account talking to the branch
manager ordering 1,000 of this and 1,000 of that. The manager was a bit
pissed that I canceled the orders before the market opened, but not for
long.
I heard about a Merrill broker that bought puts that were worth over a
million on Monday when he closed them out. He didn't have the money to
pay for the purchase, but knowing the rules he made Merrill pay up and
he quit Merrill right then.
So who caught this move and what got others on the wrong side???????
Jimmy
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