While it was still hot, the Disney Company announced the next day that it was about to launch a distribution cooperation with Daenerys Pictures on the project.

Daenerys Films' side.

Although he was dissatisfied with Simon's promise of Disney's $6 million guaranteed commission, Dennis O'Brien, the head of Craft Pictures, could only complain because of the original agreement that the project distribution would be completely dominated by Daenerys Films.

After several days of negotiations, on May 5, Daenerys Pictures officially signed a distribution contract with The Walt Disney Company.

With the release finalized, Daenerys Films only needed to complete the production of three films without distractions, and Simon began to turn some of his energy to another project.

Wednesday, May 6th.

Inside the apartment in the Century Building, Simon didn't go out this morning.

For the sake of secrecy, two managers of Lehman Brothers personally went to his home to open a futures account for him.

Approaching 11 o'clock, Lehman Brothers' senior vice president Jeff Robertson rechecked the various formalities and carefully put some documents into his briefcase, then got up and said to Simon: "Mr. Westeros, you can contact Noah directly for the next matter." Of course, if you need any help, you can also call me at any time. ”

Simon politely shook hands with Jeff Robertson and sent him out the door, only then to look at the white man in his thirties who had stayed beside him. The man was about the size of Simon, with brown hair, a clean face, and a meticulous white shirt and black trousers.

This is the classmate introduced by Janet to Simon, named Noah Scott, who is currently serving as a vice president at Lehman Brothers' Chicago branch, mainly responsible for the commodity futures business.

In order to sign Simon, a big customer, Noah Scott came from Chicago on purpose.

The two sat down on the sofa in the living room again, Simon looked at the young man opposite and said tentatively: "Noah, if I guess correctly, you and Jenny are not in the same class, right?"

Noah Scott shook his head, looked at Simon as well, and said, "Unfortunately, Simon, Jenny and I are still in the same class. ”

Simon raised his eyebrows slightly and said, "Then, you should be more powerful than I thought." ”

If he is in the same class as Janet, Noah Scott may only be 27 years old this year. At the age of 27, he became a vice president of Lehman Brothers, which was somewhat unexpected by Simon.

The job system in investment banks is different from other companies.

In the early days of investment banking, in order to maintain the same status as corporate executives in the process of business negotiations, investment banks successively named employees with positions such as managing director, executive general manager, senior vice president, vice president, assistant vice president, etc., and these titles were later retained.

As a result, on Wall Street, slightly larger investment banks typically have a few hundred vice presidents.

However, this does not mean that it will be easy to become a vice president of an established investment bank like Lehman Brothers, and it is basically impossible for a good business school graduate to join an investment bank, from the lowest analyst to assistant vice president to vice president, without spending seven or eight years under normal circumstances.

In the face of Simon's surprise, Noah Scott was very calm and said: "Actually, Simon, my father is a senior executive of Amex. Of course, I am confident enough to be competent for the current position, and your funds are very safe with me. So, what are you going to do next?"

Simon vaguely remembered that Amex seemed to have bought Lehman Brothers a few years ago, and his memory of this was not too detailed. However, Simon also knows that although the elites in the large investment banks are everywhere, they are also full of all kinds of related accounts.

Out of trust in Janet, Simon didn't dwell on this.

However, hearing the other party's question, Simon did not intend to reveal his plan to Noah Scott and the plate. The two have not yet reached that level of trust, and there are too many things about Wall Street backhanding their own customers.

"Noah, $75 million will be deposited into Westeros' account this afternoon. Back in Chicago, all you need to do is buy 1,000 long contracts for S&P 500 futures in the last two days of the week. ”

Noah Scott nodded slightly and asked, "And then?"

Simon said succinctly: "Wait." Wait for my next instruction to you. ”

Noah Scott thought for a moment, then tried again: "Simon, do you want to be long-term?"

"Maybe," Simon replied noncommittally, looked at the young man opposite, and said, "Noah, you have to understand one thing, I don't need investment advice. My request is simple, I say, you do. ”

Noah Scott felt Simon's instantly sharp gaze, shrugged his shoulders after a moment, changed his posture on the sofa slightly, and said, "Of course, Simon, the client is God." You don't seem to trust me too much, though. ”

Simon asked rhetorically, "If we swapped places, would you trust me at the first meeting?"

"If I had been 19 years old, I would have believed it," Noah Scott said with some sarcasm in his tone, but then added, "In that case, Simon, maybe we don't have much to talk about in business." So, can you tell me how you managed to catch up with Jenny? Many of us tried to pursue her, but all of them failed. ”

Simon didn't want to talk too much about himself and Janet's **, just shook his head, got up and said, "I'm sorry, Noah, I can't treat you to lunch today, maybe there will be a chance later." ”

Noah Scott didn't dwell on it, got up and shook Simon's hand, and said, "I'm looking forward to seeing the next time we meet, the trust between us will increase." ”

Sending Noah Scott away, Simon found a recent chart of the S&P 500 from the coffee table in his living room and went to his study.

Standing in front of the wide white clipboard on the wall of his study, Simon lifted the S&P 500 chart in his hand as of yesterday and compared it to another S&P 500 chart drawn from memory on the clipboard.

In order to avoid disturbing his memory, Simon had not paid attention to the recent curves of various stock indices until today. But at this point, the S&P 500 curve before May 6, 1987, in his hand, basically coincided with another curve before the relevant point in time on the clipboard.

Well, the memory is clearly not wrong.

Simon is also basically relieved, although he has his own 'butterfly', he does not think that the S&P 500 futures market, which has a daily volume of more than $1 billion, will be too seriously disrupted.

Based on the information accumulated during this period, Simon found that 1987 was a completely "wild era" for stock index futures trading. This era is full of opportunities, but there are also countless pitfalls, which can make people rich overnight, and enough to make people bankrupt in an instant.

Unlike commodity futures, which have been developed for more than a century, the world's first stock index futures only appeared in the United States in 1982, that is, five years ago.

1982 happened to be the beginning of a new round of stock bull market in the United States.

Since 1982, the Dow Jones index, the most important measure of the US stock market, has risen from 800 points to 2,300 points recently, and Simon also knows that the Dow Jones index will peak above 2,700 points in the next few months.

The vigorous development of the stock market easily covers up the various shortcomings in stock index futures trading.

Those who know a little bit about futures probably know that stock index futures have daily price limit rules, circuit breaker mechanism, debt-free settlement, position limit, and other trading rules to protect the market.

However.

Now, in 1987, none of that is there.

The Dow Jones index futures have not yet been launched, and the trading process of stock index futures is actually very simple, taking the mainstream S&P 500 index futures in the market as an example.

The recent S&P 500 index is around 270 points, and Simon's memory is that the S&P 500 peaked above 330 points at the end of August.

So.

An example of an integer of 300 points in the S&P 500 index:

Every stock index futures has a 'contract multiplier', and later the S&P 500 futures 'contract multiplier' was $250, but now it's $500.

As a result, the actual value of each S&P 500 futures contract is $150,000 in 'index points' multiplied by the 'contract multiplier'. However, futures speculators only need to pay 10% margin to buy a contract, which is $15,000.

Next, every 1-point rise or fall in the S&P 500 means a profit or loss of $500 per contract.

$500 may not seem like much, but if you multiply it by 10,000 contracts, the profit or loss represented by every 1 point change in the index expands to $5 million.

Based on a margin of $15,000 per contract, 10,000 contracts require $150 million in margin. So, on the surface, a profit and loss of $5 million is still nothing.

From 1982 to the present, the stock market in North America has been in a very stable upward state, rarely experiencing violent fluctuations. Because of this relatively flat market, the 'minimum tick' for the S&P 500 contract is actually 0.1 pips.

Because it has not undergone much change, federal regulators have not imposed restrictions on the stock index futures market for five years.

There are no price limit rules, no circuit breaker mechanism, no daily debt-free settlement system, and no position limit......

Thereupon.

When the crash of October 19, 1987 struck, disaster struck.

Simon remembers that on October 19, the S&P 500 index opened directly below 200 points from the previous Friday's close of 281 points.

80 pips drop.

What this means.

It is still calculated based on 10,000 contracts.

If someone mistakenly opens 10,000 long contracts at 281 points on October 16, the total margin is about $140 million. On October 19, his loss on each contract would be $500 multiplied by 80 points, or $40,000.

If 10,000 long contracts lose $40,000 each, the overall loss will reach $400 million. Compared to the $140 million margin, the loss ratio is close to 300%.

As a matter of fact.

In the 1987 stock market crash, there was indeed such an unlucky guy who mistakenly bet on a huge number of long contracts, that person was named George Soros, and later the financial predator lost $800 million.

As a result, the Quantum Fund, which had just exceeded $3 billion in net assets that year, shrank by more than a quarter in just a few days.

Right now.

Apartment in Century Building.

Simon looked at the S&P 500 on his study board and up to the road, his fingertips tingling slightly at the plans for the coming months.

in front of the curve.

From 270 at the beginning of May to 330 at the end of August. The overall rise of 60 points is no less volatile than a stock market crash. With a 60-point increase, you can make a profit of $30,000 per long contract. The profit margin is enough to exceed 200%.

A volatile September.

Parry.

October 19th.

281 points to 200 points, 80 points down, a real stock market crash.

Soros famously has a theory of reflexivity, which simply states that market participants and the market interact with each other unpredictably all the time.

Simon naturally considered that the addition of his 'butterfly' would change the original market trend.

But.

With all the chips he could expect, he now has just over $100 million.

If you really lose, you lose.

It's just starting all over again.

But.

If it wins.

On his quest to the top of the pyramid, Simon will climb too many steps at once.