I'm in the county town, and you say I'm a big shot?

Chapter 175 Doomsday Options!
Fang Qingye remained calm, peeled a peanut and put it in her mouth, then asked, "How do you plan to manipulate the market? Go long or short?"

"Short selling".

Short selling?!
Fang Qingye was stunned for a moment.

This guy actually wants to short sell!

Currently, retail investors are very enthusiastic, and cotton futures trading is very active. However, the major players are simply taking profits and want to rest halfway up the mountain. Therefore, cotton futures prices have begun to fluctuate within a range.

But he knew that the cotton futures bull market was far from over, and the real frenzy was yet to come next year!
He actually dared to short the market against the trend?!
How could someone so intelligent have such a foolish idea?
Could there be another reason?
Feeling a little embarrassed by Fang Qingye's gaze, Shi Guangrong avoided his eyes, picked up a piece of food, and said, "President Fang, why aren't you saying anything?"

"How much funding can you access?" Fang Qingye finally asked.

"About 1.5 million, of course I can find a way to borrow if needed, and raise 2 million." Shi Guangrong said confidently.

"You think you can be the dealer with just 200 million?!" Fang Qingye sneered. "Maybe you could try if you had 1 billion."

"Isn't this because the two of us teamed up?" Shi Guangrong said with a smile.

Fang Qingye flatly refused: "Don't rely on me. I'm new to the futures market and don't have much capital. I'm timid and I would never borrow money to become a market manipulator."

Shi Guangrong fell silent and chewed his peanuts quietly.

Seeing his expression, Fang Qingye suddenly thought of something: "I remember you once said that you were betrayed by a friend. Is this friend of yours trying to hype up the contract in November?"

"Yes, and there's also that big short seller from the May contract, the one who caused me huge losses, Ye Qingjun, the actual controller of Ningbo Dunhe Investment Company, who's also involved in the fraud."

Ye Qingjun?
Isn't he just one of the "Four Legends" of the futures market in history, known as the "Southern Emperor"?

Ye Qingjun did indeed go long on cotton in 2009-2010, and his personal assets are said to have reached several billion yuan.

These figures, idolized by small investors, all seem like heroes in the martial arts world. But Fang Qingye knows that in the eyes of real financial tycoons, they are nothing more than slightly larger small investors.

Those exciting trading techniques that retail investors rave about are utterly insignificant in the face of cold, hard quantitative trading.

Liang Wenfeng's magic square quantization is one such example. If DeepSeek hadn't become so famous, who would know about the magic square quantization behind it?
Controlling hundreds of billions of yuan!

Of course, as things stand right now, neither Shi Guangrong nor I have the funds we have to match Ye Qingjun's, especially when we want to go against the trend.

You're not just fighting against the other party, you're fighting against the trend!

"Mr. Shi, I suggest you give up this idea. As the saying goes, money gives men courage. If you don't have enough funds, don't dream about it." Fang Qingye spoke directly.

Shi Guangrong sighed deeply and said nothing more. He wanted to drink, but found that Jiang Yiling had taken away his wine glass.

Fang Qingye paused for a moment, then suddenly asked, "What is the price of the September contract today?"

"15565 dollars."

"Counting from today, there are still four days until the September contract expires," Fang Qingye said thoughtfully. "Do you think the price will rise to 16000 yuan when the contract expires?"

Shi Guangrong thought about it carefully and shook his head: "I think it's unlikely. The time is too short, only four days of trading time, unless the main force puts in a lot of effort to drive up the price."

"Do you think it's possible?" Fang Qingye asked. "Yes, but the possibility is very small. A sharp rise means accumulating a large number of shares, but the problem is, there's no time to sell these shares. Do you think the major players would really take a bunch of contracts to Zhengzhou for physical delivery?" Shi Guangrong laughed.

"Oh," Fang Qingye said nothing more and started chewing peanuts again.

Seeing Fang Qingye's expression, Shi Guangrong couldn't help but ask again, "President Fang, what exactly are you trying to say?"

"I was wondering if I could try trading the September contract's end-of-day options?" Fang Qingye said leisurely.

"What?! Doomsday options!" Shi Guangrong was immediately taken aback.

"Glory, what is a doomsday option?" Jiang Yiling, who had been listening to the conversation, was a little confused.

"The so-called 'end-of-day options' are those option contracts that are about to expire. They may only have 5 days, 3 days, or even 1 day left to expire. If the price of the underlying asset fluctuates sharply when the option contract is close to expiration, the end-of-day options held by investors can bring several times the return. Of course, with high returns comes high risks; it is essentially a gamble," Shi Guangrong patiently explained.

"What you're talking about is options trading, which is quite different from cotton futures trading, isn't it?" Jiang Yiling seemed to understand but not quite, but she grasped the key point.

"Yes, the two are different, but they also have similarities. Moreover, options trading is attached to futures trading. For example, as President Fang just said, he believes that the price of cotton futures in September can rise to 16000 yuan in three days, so he can buy the 'Cotton 09 Contract 16000 Call' option."

"Then, Yiling, let me ask you, do you think the probability is high?" Shi Guangrong asked in return.

"Didn't you say it wasn't big?"

"Yes, the contract will only become effective if the price rises from 15440 yuan to 16000 yuan. People generally believe that this possibility is very small, so the option price is very cheap. However, if a sudden event occurs and the cotton futures price rises to 16000 yuan, then the option price will also skyrocket, and you will make a big profit."

"Oh," Jiang Yiling seemed to understand, but being clever, she didn't ask any further questions. She could also tell that Shi Guangrong was very interested and eager to talk to Fang Qingye about this.

"Mr. Fang, do you really want to play with doomsday options? You must be well aware of the risks involved. What makes you think cotton futures prices will rise to 16000 yuan? What's your reasoning?"

"Not yet." Fang Qingye smiled and shook her head: "It's just a feeling, of course we still need to calculate it."

Feel?

Shi Guangrong was immediately disappointed.

He thought Fang Qingye possessed inside information unknown to others, and this inside information caused the cotton futures contract price to surge in the last three days!

That would be a huge profit, even more exciting than futures trading!

"Alright, let's not talk about this anymore," Fang Qingye said. "Aren't we almost done? I'll clear the table." Fang Qingye stood up as she spoke.

"I'll help." Shi Guangrong also helped clear the dishes.

His action caused Jiang Yiling, who was standing next to him, to sigh slightly.

When have I ever seen him so diligent in Shanghai?
Why.
Around 7 p.m., Shi Guangrong left by car, carrying a bellyful of questions.

He really couldn't figure out whether Fang Qingye was just casually mentioning the day-trading options or if he was serious about it.

If you're going to investigate, what inside information do you actually have?
Shi Guangrong's attention was focused on the internal news, but he overlooked a sentence Fang Qingye had just said: "Of course, we still need to calculate it."

(End of this chapter)