A hedge fund that went bankrupt in July, Situational Awareness, is going on to fail big again

Yesterday, September 17, «someone» (Wall Street points a finger at the hero) paid a $100M premium for call options expiring on October 2:

Purchased:

Micron - 1 million shares with a strike of 1000 (premium $44M)

Sandisk - 420k shares with a strike of 1600 (premium $41M)

Intel - 2 million shares with a strike of 115 (premium $7.3M)

MRVL - 350k shares with a strike of 250 (premium $3.85M)

In fact, for $100M - a long position worth $2B has been built.

Due to the close execution of these options (in 15 days) - Leo has a high break-even point:

Profit is obtained only if by the evening of October 2:

Micron costs $1044 or more, Sandisk $1697, Intel $118.65, MRVL $261.

At prices below that, the money paid for the options goes into the spotlight (to Ken Griffin of Citadel)

Micron's reporting is right at the end of September, and the deal’s hero thinks that’s when the whole sector will pop.

On Twitter they ask: if in July the fund lost $35B, then in case of failure - how to explain the fund’s desire to burn yet another $100M on options in 15 days?