3 Takeaways From the Recent Options Market Slide

3 Takeaways From the Recent Options Market Slide


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The fallout out from last week’s Natural Gas surge is still coming down. Its casualties range from professional and supposedly sophisticated hedge funds — ranging from their wealthy clients to small retail investors.

Last week I wrote how Natural Gas’s huge move was exacerbated by hedge funds unwinding positions, which resulted in a 35% price explosion — likely leading to large losses and potential business collapses.

Sure enough, several funds, including high-profile Andurand Commodities Fund lost 20 percent-plus in a matter of days.

Interestingly enough, this comes almost exactly 10 years after hedge fund Amaranth blew up and lost some $9 billion; clients are still waiting to recoup some of their money.

There’s a reason… Continue reading at StockNews.com