Warning: Creating default object from empty value in /home/customer/www/optionpundit.net/public_html/wp-content/themes/salient/nectar/redux-framework/ReduxCore/inc/class.redux_filesystem.php on line 29
Keep an eye for BSC comments - Learn to Trade Options | #1 Options Trading Education

Keep an eye for BSC comments

Published on August 7, 2007

Keep an eye for BSC comments

August 7, 2007

(for details pls visit www.OptionPundit.net)

Y’day I talked about a trade on BSC’s falling from grace. OP’s registered users to forum and blog received this trade alert via e-mail soon after I opened the trade. I opened primarily with a bearish perspective and mentioned $100 support. Ah, it did find the support at $100 but in afternoon trading it shot up by $13!!!

Warren Spector, co-president, has been asked for the resignation, and  according to FT.com, Jimmy Cayne, chairman and chief executive of Bear Stearns (NYSE:BSC), has been calling round other Wall Street chiefs to reassure them about its financial health and to head off a crisis of confidence in the bank. Mr Cayne phoned Stan O’Neal, chief of Merrill Lynch, on Friday and has asked for a meeting with Chuck Prince, Citigroup (NYSE:C) ‘s chief. Bear has also received calls from concerned counterparties seeking reassurance.

Bear’s shares fell sharply early on Monday following Sunday’s ousting of Warren Spector, co-president. But they rallied with the late surge in the market, helped by cautiously positive comments from analysts. They closed up 5 per cent at $113.81. I am not sure if this could be a turning point.

There is no hope, coulda, would, shoulda, so depending upon how it behaves, i shall be adjusting the trade. If you did open the trade based on my post, pls make sure to follow through via comments (either subscribe to those or visit the blog often). The beautiful part with this trade is the IV and theta. Despite $13 rally I am almost flat (loss of $0.05 on $3.75 per spread investment).

Looking forward to great day ahead, Profitable trading, OP

Leave a Reply

Facebook IconYouTube IconTwitter IconFollow Me on Instagram