George Soros bought $42 million worth of puts on MGM Resorts earlier this year
On Tuesday, September 5th, 2017, the board of MGM Resorts International decided to approve a $1 billion share repurchase program. At a net worth of $17.7 billion today, the program represented a significant portion of its current market cap. By the end of the week, MGM’s CEO, James Murren, had coolly divested himself of 80% of the shares he owned in his company. The divestment came just days before the ex-dividend date on September 8th, 2017.
Mr. Murren and his fellow board members were not the only speculators who were bearish on MGM’s prospects. Billionaire investor George Soros also bought $42 million worth of puts on the company, according to SEC filings from mid August.
It's hard for me to say what is going on here. Maybe Soros and this Murren guy knew something was going to down in Las Vegas or maybe they new the elites, which Soros is one of, are going to collapse the economy in the fall and were just getting prepared for that.
42 million is a drop in the bucket for Soros, I think he has made bigger bets on the sub-prime mortgage collapse and the brexit pound beating in the past. MGM stock only went down from $33 before the shooting to only $31 after the shooting and that's not even a 10% move so I don't think he made a whole lot of money on that short position anyways.
I think people should be looking closer at Mr. Murren and the reasons why he divested 80% of his shares less than a month before the shooting because that is a big red flag that something is going on internally at MGM.
With options trading, your potential gains are multiplied.
Soros most likely made a fortune from this alleged orchestrated attack.
Las Vegas attack has many unanswered questions and these options trades need to be investigated.
I'm no expert in shorting stocks but I think a stock needs to loose like half it's value before you double your money. You can also double or triple short a stock so maybe he did that and doubled his money.
With put options, your gains can be magnified tenfold even with a slight drop in value. A few cents drop in share price can result in massive returns.
ah ok.
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