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Edmund.Leung@xxxxxxxxxxxxxxxxxxxxx wrote:
>
> well from what i hear vic got jammed up in the southeast asia currency
> devaluation going alot further than he thought(he was long these
> currencies) he probably experienced a margin call on this as well as
> the favorite trades of emerging markets. so he raised cash quickly by
> selling sp puts. who knew it would puke next week. such is the way
>
This is not what happened. The Asia problems were in July and August.
The funds had earned virtually all that money back (on a percentage
basis) by mid October.
You cannot "raise cash" by selling options naked since they require you
to put up more margin than the premium collected.
This is the danger of telling trading stories, while they are good for
learning markets lessons, they tend to get totally out of control very
quickly.
Eric
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