If you’re a follower of My Del.icio.us links in the sidebar (or a RSS feed reader), you would’ve seen my posting of the “Dispelling the ‘Bin Laden’ Option’s Trade” article. Sure enough, as posted in my first Conspiracy Trade article and discussed in the comment section, this potentially nefarious trade was nothing more than a box spread options trade.

Dan Perper, a Partner at Peak 6, one of the largest option market makers and proprietary trading firms, has confirmed that the trades are part of a “box-spread trade.”

“This was done as a package in which the box spread was used [as a] means of alternative financing at more attractive interest rates” explained Perper.

I wonder what the nuts have to say about this explanation?