ChristianKl comments on Open thread, August 5-11, 2013 - Less Wrong

3 Post author: David_Gerard 05 August 2013 06:50AM

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Comment author: ChristianKl 06 August 2013 09:24:46PM *  3 points [-]

What do you tell the SEC when they asked you why you brought the options for Goldman Sachs?

Comment author: ThrustVectoring 09 August 2013 01:19:57AM 0 points [-]

Tell them the options were bought on the advice of a psychic reading. Or an Ouija board. Given that people know of the Death Note, they would suspect you to be the holder of the Death Note. Without that suspicion, it's just a massive coincidence.

Alternatively, buy the options as part of a hedge, or as part of a variety of out of the money put options, or as part of any other broad investment strategy. If you get hundred-to-one returns, if it's 5% of your portfolio then you still have five-to-one returns, which is plenty.