A “call option” is the reverse of a put option, which is, in effect, a derivatives bet that the stock price will go up. On September 10, 4,516 put options on American Airlines were bought on the Chicago exchange, compared to only 748 calls.
On September 29, 2001 – in a vital story that has gone unnoticed by the major media – the San Francisco Chronicle reported, “Investors have yet to collect more than $2.5 million in profits they made trading options in the stock of United Airlines before the Sept.


That evidence also demonstrates that, in the case of at least one of these trades — which has left a $2.5 million prize unclaimed — the firm used to place the “put options” on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. If exercised, they give the holder the option of selling selected stocks at a future date at a price set when the contract is issued.
Thus, for an investment of $10,000 it might be possible to tie up 10,000 shares of United or American Airlines at $100 per share, and the seller of the option is then obligated to buy them if the option is executed.


If the stock has fallen to $50 when the contract matures, the holder of the option can purchase the shares for $50 and immediately sell them for $100 – regardless of where the market then stands.



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