New Series! PIT STORIES by Lewis Borsellino, is a collection of real-life experiences from the height of the CME trading-pits, during the time when the pit traders ruled the marketplace and directly managed orders from such customers as Merrill Lynch, Goldman Sachs, Bear Stearns, E.F. Hutton. Lewis Borsellino accounted for 10 percent of the average trading volume in the S&P contract, just for himself. Known as one of the “biggest and best” traders in S&P futures, these stories are being re-told exactly as they happened. *Disclaimer, if you are sensitive to language or political correctness, this post isn’t for you.
On October 16, 1987, the Friday before Black Monday, I was waiting to board a plane headed for Europe with 7 friends and business colleagues. I had been to the CME trading floor and traded until noon. I left the exchange short 20 big S&P contracts with profits of $125,000. A limousine drove me to O’Hare International Airport terminal…
The following conversation took place at the gate and was between my clerk, Joan Weber and myself, as I explained how to manage my position. Keep in mind, not many people had cell phones and they certainly were not used to the language or volume coming out of my mouth… yet I was oblivious to my surroundings… nor did I give a fuck.
Lewis: Joanie, where is the market at? Did I get stopped out of the shorts?
Joanie: You’re not going to fucking believe it, since you left for the airport the market is down another 1000 points, 500 points from limit down.
Lewis: You’re fucking kidding!!!!! What’s limit down, 2500?
Joanie: Yes, 2500… it’s fucking crazy!!!!
Lewis: How much money am I up?
Joanie: $200,000
Lewis: If I get out at limit down, how much?
Joanie: $250,000
Lewis: Did the two numb nuts and Jap check all our trades?
Joanie: Yes everything is checked, the first out trade run came out we have a few price outs but no strait outs.
Lewis: You’re sure?
Joanie: Yes
Lewis: Ok, I will be on the plane and I fucking can’t call you. Put a buy stop at 2400.00 OCO limit down or market on close. I don’t want to hold them over the weekend. Market will probably bounce back big on Monday!!!! When we land in New York I will call you.
Joanie: Ok limit down or MOC? Or 2400?
Lewis: Yea, worst case scenario we make $75,000K. Make sure I am flat… anything can happen over the weekend, probably big bounce on Monday!!!
Joanie: Yea, I think your right. Ok what should I do with you’re Euro dollar options?
Lewis: Fuck those options, they aren’t worth dick!! I am long the 1000/ 94.00 calls the market is trading 92.50. They’re going to expire next week worthless!! I am going to lose 25k on that Maury Kravitz play!!!
Joanie: They’re worth a $1,000… You get a grand back.
Lewis: Fuck it, let them expire. Maury and his bright fucking ideas, I love him!!! But I think he is cracking up, he is fucking nuts. Yesterday he told me he is going to fucking Mongolia and look for Genghis Khans’ fucking tomb with Chuck Connors.
Joanie: Who is Chuck Connors?
Lewis: You know the big fuckin’ goofy actor with the big jaw who played the Riflemen on TV.
Joanie: How does he know him?
Lewis: Fuck if I know. Look, make sure you cover the shorts… I think the market can have a big rally Monday.
Joanie: Don’t worry I got it!! How many fucking times you going to tell Me!!!
Lewis: I know. I know Well it’s not like I’m going around the fucking corner, I will be in fucking Europe!!! Maybe I should cancel this fucking trip… the market is crazy? The fucking market is getting killed it’s down almost 10% on the week.
Joanie: Let me know I have to cancel my plans.
Lewis: Ah, fuck it!! I’m up 2 million on the year I’m going to Switzerland and Italy, I’ve never been to Europe. Where you going?
Joanie: Going to see my parents in Arizona.
Lewis: Ok enjoy yourself.
Joanie: What should I do with the clerks?
Lewis: Pay them and give them the week off.
Joanie: Have fun and be a good boy!!!
Lewis: You know me I am always good!!!
Joanie: Yea, I know you…
Lewis: Love you Joanie
Joanie: Love you too!!!
Danny: Hey Lewis the plane is boarding
Lewis: Ok I’m coming
Lewis: Joanie, you have you cell phone in case I have to find you?
Joanie: Yea
Lewis: Ok bye
Danny: Everything ok?
Lewis: The fucking stock market is getting killed again today.
Danny: Is that bad for you?
Lewis: Fuck no! I am up 200,000k… its going to be a great trip.
Danny: Fuck it… let’s have some fun!!!
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