Ever thought of this - If you are making a killing through puts (etc), or in gold (etc) what happens if, at the time for settlement, th other side can't pay, or refuses to pay?
Do you: a) enforce specific performance (no - it is not property that we are dealing with here); b) give them time (no - I want my money now you %^**^&); c) re-negotiate the terms of settlement (no - because the big players are in there way ahead of you, or me); d) sue for damages (no - because every lawyer worth their continuing salt with require payment up front to be made); e) explain the situation to your own bank (no - because we don't have one, or the bank has already shut its own doors by this time); f) send around some mates to do the job for you (no - because the coppers are still doing their job and just as easily you could end up worse for wear); g) go back to basics and try to understand exactly what it is that has happened out there in the market (maybe - especially if you are a member of an Investment Committee with significant dollars available to spend, are trawling for opportunities, and want to pay baseline value, or alternatively "unders" rather than "overs" - read the cryptic message here because it suggests what is happening in reality rather than in hype or innuendo); or h) are left poorer for the experience, and with some useless stock on your hands (quite likely).
Nickoo, for your pessimissm to work, you require a perfect market to still operate, and for everyone to still work, operate, commit and settle their dues in an orderly manner. In the world that you describe, however, none of these will occur. Amongst other things, its called defaulting on your commitments and you, like the rest of us, will be just as caught out by the circumstances.
Anyway, I have another IC meeting to prepare for now.
