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On October 11, 13, and 14, 1982, Mr. Resser entered into 12
positions comprising 4 butterfly spreads. From these 4 spread
trades, Mr. Resser closed certain positions and realized net
losses in the amount of $1,121,148. A portion of these losses,
$188,896, was generated on October 11, 1982, when Mr. Resser
closed out the January 65 call leg from his October 1 TDY
transaction. On October 13, 1982, Mr. Resser closed out an April
70 call leg from a September 30 spread and realized a $275,181
loss.
On October 14, 1982, Mr. Resser established an April 70-80-
90 butterfly call spread (100 + 100 short on the wings/200 long
on the body) and realized losses of $448,040. Mr. Resser also
entered into a January 65-75-85 butterfly call spread that netted
losses of $209,031.
Mr. Resser's net losses claimed from the few trades
occurring on September 30, October 1, 11, 13, and 14, 1982,
amounted to $1,121,148. Mr. Resser executed no other stock
option trades in account QRF until December 17, 1982. On that
date, Mr. Resser entered into a TDY spread and realized a net
gain of $227,442. The December 17 spread reduced Mr. Resser's
net trading losses in account QRF from $1,121,148 to $893,706.
Mr. Resser's 90-percent share of the $893,706 loss equaled
$804,335. After the December 17 transactions, no other trades
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