Dr. Michael Burry of Scion Asset Management LLC had predicted the housing crisis way ahead of its time while many frenzy investors were still busy buying and selling CDO's and making a hefty profit by flipping contracts like houses.
 | The 2008 financial crisis had rolled forward a series of events that many financial experts had fathomed for decades. People started defaulting on their loans, businesses went bankrupt and an asset… medium.com |
In general, an option is a contract between two investors. One of them is writing the option, and the other is buying the call option.
The 2008 financial crisis had rolled forward a series of events that many financial experts had fathomed for decades. People started defaulting on their loans, businesses went bankrupt and an asset class which people believed would never "tank" came down drastically in value due to speculation and other widespread bets placed through various derivative contracts.