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I though the same thing, why were the decayed options not cleaned out to make way for fresh sales.
I can say I have been guilty of this myself at times, usually when things have not gone well and the virtually worthless options around the account are seen as adding up to something meaningful towards trying to make good a loss. Just wondering if that's the case here, where performance hasn't been good, and they were trying to see everything go to 0 to get the most back they could.
Can you help answer these questions from other members on NexusFi?
"true root cause of this blowup" was a bad choice of words on my part.
A few traders I have talked to think there is more to the story than just the Nat Gas blowup. No proof offered though, so take it for what it is worth.
I took the NG calls that were listed on that spreadsheet supplied above and used my platform to see the volume of trades made on those days for that contract.
It's pretty obvious he was only one making trades when he was entering. Some of the options the first trade for that option was made by Cordier.
Obviously some of the volume, especially in Nov, was not all Cordier.
I'm getting around 22,000 Feb calls added in Oct and Nov. About 15,000 Mar calls.
Now I'm going to make some big assumptions here. Let's say Cordier had on 35,000 calls at an average price of $600. That is $21 million.
If he exited them at an average price of $6,000 ($210 million) (mar 19 c500 trading range on Nov 14 was 0.420 to 0.833), then his loss would have been $189 million.
EDIT: Even if you assume 30,000 calls and he exited at $5,000 each the loss is $132 million.
And this isn't accounting for losses on CL puts.