Chapter 110: Travel Training (5)
“...So, when are you going to do it? That... the France collapse plan.”
Seo Ji-yeon asked, fidgeting with her fingers.
For someone who told me to do whatever I wanted, she’s being awfully timid.
“When the time’s right. Ideally, it’d be nice if it overlaps with the option expiration date. I’m still running the numbers.”
Just because something happens doesn’t mean stocks immediately fall. I have to consider market closure days, people’s psychology, and how fast they process information.
And derivatives, unlike stocks, include time value and other variables, which makes the calculations extremely complex. There are some math nerds eyeing it, but... recently, most of the masters of financial engineering all flocked to LTCM, so there's no one decent left.
Ah, what’s LTCM? A fund founded by geniuses that earned 30x returns within three years and became a legend on Wall Street.
It was founded this year, and by 1996, it’ll become the biggest fund on Wall Street... They don’t even have $10 billion in equity but manage $140 billion. That’s insane.
And yes—objectively speaking—it is insane. LTCM ultimately couldn’t withstand Russia’s moratorium and went bankrupt (though the U.S. Fed bailed them out).
I think I could manage something like that with leverage... somehow.
Alpha Fund doesn’t have enough prestige to pull off that level of leverage. Leverage only works when someone lends you money, and in my case, I invest in inherently high-volatility areas too.
‘Sometimes, when you’re managing money, your sense of scale gets fried.’