Nickname: Bob

Review: Could someone explain to a novice like me a little more explicitly how Amaranth lost so much money? Does the article mean that Amaranth bought a lot of options to buy natural gas many months later (in anticipation that Katrina disruption would keep gas prices high for a long time) but then was stuck with them when the gas production recovered very quickly so that the price of gas and new options on gas for the same months they already held options declined sharply? Thank you.

Date reviewed: Oct 20, 2006 10:07 PM