Minyan Mailbag - UAL
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next column with that very intent.
It's funny you should mention UAL.. As an option guy you will understand this more than most..
I started on CBOE, purchased a seat, Brown Badge and worked in the Chrysler pit. In that pit was a guy who made millions - he just made money - conversion/reversals and the spreads. He was outstanding; he just grinded it out.
During the UAL take out, for some strange reason, he went over to that pit and sold naked puts in size. Well, lo and behold, the merger was put on hold. I forgot what happened, but needless to say the stocked tanked, big time. And then the obvious happened. He was taken out, and what made it even worse - I think - the next day the merger talks started up again, but he was broke.
I learned a lot from that, I can assure you. I worked next to the guy during a take out that went on to start DeepHaven Hedge Fund (who has since sold it). I was reading your article re: the convertible market and how that dried up and, sure enough, I noted how that area of the biz has really fallen off (and guys are probably starting to take more and more risk).
I really enjoy your insights, as I 'm still very active in the market - You have a tremedous undertsanding of the marketplace and your insights are always right-on.
I can tell you that I am making more money since I have been a member of Minyanville - just a fantastic group.
Minyan Charlie Simmons
You are referring to my old friend Irv Kessler. One of the greatest traders ever. I am also friends with the great Mark Kellner and Danny Asher.
Thank you for the compliment. Believe me my lessons come from the school of hard knocks.
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