Bin Laden shorting reinsurers...

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    Confirmed User
    • Aug 2001
    • 2283
    #1

    Bin Laden shorting reinsurers...


    I heard it on FinanceVision that Bin Laden, or one of his groups, had shorted several of the major reinsurers through UK banks during the attack.

    Had anyone seen any other reports on this? I'm interested on how much they're going to be able to track.

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    • dustin
      Confirmed User
      • Aug 2001
      • 18
      #2
      I heard from someone that they did it through options, not from simply shorting the stock, which gives you absolutely huge returns. 10% drop = about 300% return. Thru buying puts/writing calls.. figure I heard was something like 50 million profit.
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        • Sjayne
          Confirmed User
          • Jan 2001
          • 1182
          #3
          I read something on this yesterday..will see if I can dig it out. There was something about a German insurance company.

          Also, something about airline stocks ..want to find it before I say a wrong name.
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            • Mikey
              Confirmed User
              • Jan 2001
              • 665
              #4
              Yeah, I've been following those stories. Here are a few:
              http://www.reuters.com/news_article....StoryID=235254
              http://www.latimes.com/news/nationwo...1trading.story

              Got this info of my bloomberg terminal on a story about the probes:

              One day before two American Airlines jets were hijacked and
              crashed, 1,535 contracts changed hands on options that let
              investors profit if AMR stock falls below $30 per share before
              Oct. 20. That was more than 60 times the previous daily average,
              and five times the total of all October $30 put options traded
              before Sept. 10, according to a Bloomberg analysis of options
              market data. AMR shares rose $2.01 in midafternoon trading to
              $20.01, after falling $11.70 yesterday to $18.


              Those 1,535 contracts were worth $1.6 million at yesterday's
              closing price compared with $337,700 at the end of trading on
              Sept. 10, according to Bloomberg data. A contract represents
              options for 100 shares.
              Similarly, October $30 put options for UAL soared, with 2,000
              contracts traded on Sept. 6, three trading days before the attack.
              That was 285 times the previous average trading, and almost 75
              times the total number of those options traded up to that time.
              The 2,000 contracts were valued at $2.4 million yesterday,
              compared with $180,000 on Sept. 6.
              and

              At Morgan Stanley, trading in October $45 put options jumped
              to 2,157 contracts traded between Sept. 6 and Sept. 10, almost 27
              times a previous daily average of 27 contracts. Morgan Stanley
              shares fell 25 cents to $42.25 after dropping $6.40 to $42.50
              yesterday.
              Other brokerage and insurance companies where options trading
              surged include:
              -- Citigroup Inc., which has estimated that its Travelers
              insurance unit may pay $500 million in claims from the World Trade
              Center attack. It had a jump in trading of October options that
              profit if shares fall below $40 apiece. Almost 14,000 of those
              options contracts were traded from Sept. 6 to Sept. 10 -- about 45
              times the previous daily average. Citigroup shares fell 8 cents to
              $39.52. Yesterday, when trading resumed after the attacks,
              Citigroup shares fell $2.85 to $39.60.
              -- Bear Stearns & Cos., where investors traded 3,979
              contracts from Sept. 6 to Sept. 10 on September options that
              profit if shares fall below $50. The previous average volume for
              those options was 22 contracts a day. Bear Stearns shares fell
              $1.09 to $45.36 and have dropped 10 percent so far this week.
              -- Marsh & McLennan Cos., the biggest insurance brokerage,
              which had 1,700 employees working in the World Trade Center.
              Traders on Sept. 10 exchanged 1,209 contracts on options that
              profit if company shares fall below $90 through the third week of
              September. Previously, 13 contracts had traded on an average day.
              Marsh & McLennan shares fell 20 cents to $84.30, a day after
              falling $2.50 to $84.50.

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