Chapter 57
Chapter 57: <Seattle, New York, and Silicone Valley>
-Hello. This is Reporter Jo Hoonyoung on YTT. Lehman Brothers reported loses of 2.8 billion dollars and was forced to sell off 6 billion in assets. Lehman was the fourth largest banking investor in the US. After it filed for bankruptcy, the global markets immediately plummeted.
-Currently, KOSPI index is at its lowest of 1300. The future of the financial world remains dark and uncertain.
Click.
Shin Semi turned off the TV with the remote.
“I can’t believe Lehman Brothers filed for bankruptcy”
Even after hearing it on the news, she still couldn’t believe it. The experts believed this would never happen. The researchers at Nuri Finances agreed too. However, it did happen despite everyone’s prediction.
It was a shocking event that shook the world. It didn’t only affect the US, but the entire world.
It was unbelievable.
Shin Semi grabbed her phone. She remembered Woosung’s words.
“Risk management, New Century Financials’ bankruptcy, and the Finances Lab researcher Kim Mansoo’s report…Did he mean this?”
Shin Semi was almost sure Woosung knew this financial crisis would happen. She became even more curious about him. She frowned and murmured.
“I wonder what he’s doing…”
Her sources told her that he participated in the Microsoft MVP Global Summit in abroad and hasn’t returned yet.
“Should I call him?”
She was tempted, but she stopped herself. What was he doing in America? She wondered.
September 12th.
Dow Jones started at 11429 and finished at 11421. Woosung purchased a mass number of put options. After Lehman Brothers filed for bankruptcy on September 15th, the Dow Jones index went down to 10700. The US market was in panic and Woosung’s options’ value soared.
What Woosung purchased was a put option, an option to sell assets at an agreed price on or before a set date.
Dow Jones’ option unit was a point.
One point’s value, which was called a tick value, was worth 10 dollars.
This meant for each option, 7290 dollars were earned this day.
(11429-10700)*10=7290
Woosung checked his account.
Proceeds + 1.42million
Proceeds + 1.96million
Proceeds + 2.82million
The value of his September 11420 put option went up at an unprecedented rate. The index would go down even more, which meant the option value would increase.
However, Woosung also knew very well of the technical rebound.
Proceeds + 4.71million
So far, he had 4.7 million dollars. It was almost 10 times what he originally had, which was about 500,000 dollars. Woosung murmured.
“What a crazy world.”
His heart beat fast. It was still hard to believe that the large number on the screen was really his money.
It felt surreal, but it was going to be even better.
“Soon, the Federal Reserve will provide an 85-billion-dollar loan to AIG to prevent its bankruptcy. And then…the US market will plummet even further, and my put options’ worth will be…”
Woosung couldn’t even imagine the number.
September 19th.
After the September put option deadline ended, Woosung bought December 11200 put options. Soon, the news he was expecting came.
Further plunging of Dow Jones Index.
September 30th 10850.
October 2nd 10482
October 6th 9955.
Woosung did a quick calculation.
(11200 – 9955) *10 = 12,540 dollars.
Each option was worth over 10,000 dollars.
“What the fuck!!”
Adams, who worked at a US Hedge fund company, was losing his mind. He believed after the Fed’s bailout, the index would return to normal. That was why he took the put option seller position. It was the opposite position of Woosung.
Adams’ eyes were red as he stared at the computer screen. He was frowning harshly. His supervisor came up to him.
“Adams, what’s the damage you caused today?” Adams couldn’t answer. It was a rhetorical question anyway as the supervisor already knew the number very well. “I understand you are speechless. It is so much money…But it’s understandable. It’s the world’s financial crisis after all. Of course, there are always people who still make money off of such a bad time.”
The supervisor’s voice was sharp. Adams cringed.
“Like the one who bought your put options.” Adams knew what was coming. “It’s unfortunate that you couldn’t be the one who made the money. We could’ve worked together longer. It’s disappointing.”
He was being let go. Adams tensed. It was over. With the way things were in the world right now, it was unclear when he would be able to find another job.
“Please leave as soon as possible.”
Adams sighed.
Woosung was watching the news. All his put option contracts were expired now.
“Current index is 8800. It will go down further.”
Based on Woosung’s memory, the world didn’t recover from this event until the end of 2008.
However, Woosung remembered to be smart, not greedy. The way he saw it now, he had enough money to last a lifetime. Indeed, with these amount of money, he could finally put a stop on his money-maker. He checked his account balance.
Proceeds + 791.5 million dollars
With only 500,000 dollars, he made close to 800 million dollars in just over a month.
“I love America.”
The money was in the American business account.
If he combined the money he made from the Korean market, he expected it to be close to a billion dollars.
“Now I need to go to Silicone Valley to meet Jonathan Logan. After that, I can return to Korea.
Woosung relaxed at last. His body was aching, so he called for a massage from the hotel room service.
A blond masseuse knocked and walked in. Woosung closed his eyes as he enjoyed the massage.
He has been in America for four months now.
In the beginning, he stayed at a cheap motel and ate fast food. Now, he stayed at a hotel suite and ordered room services.
So many things changed in four months.
It was a stressful four months. He kept doubting his memories on the index numbers and dates. It was a difficult time, but it was all worth it. The memories of his previous life served him well.
‘With this money, I should buy a factory in Silicone Valley. I will fill it with computers and mine Bitcoin.’
Jonathan Logan.
Woosung was able to hire this Arduino project committer. Woosung asked him to find a suitable factory. Things were working out as he planned.
After the 2-hour massage, Woosung headed to the hotel restaurant. As he ordered steak, he couldn’t help but miss his mother’s cooking.
‘I’m coming, mother.’
He couldn’t help but smile as the face of his dearest mother flash through his memory. He would be home very soon.