Stocks and Trading Thread - Channeling your inner Mono

[Richard Hakluyt]

Me today: 

Pretty much the same here. Though at least I sold out before the last fall from the FTSE from 6000 and bought back in around 5200-5300, with a smaller stake too. A lot of them are utility shares yielding 6% or more......odd that someone would prefer a bond yielding 2.5% to these..........oh well 

[MadImmortalMan]

Cashed in on HPQ puts I bought Tuesday this morning for a 257% gain. lol

[Tamas]

Cashed in on HPQ puts I bought Tuesday this morning for a 257% gain. lol

[Tamas]

http://www.youtube.com/watch?v=wcAXDc4Uz6Y

[MadImmortalMan]

Lloyd Blankfein hired a defense attorney, and Goldman is tanking.



http://www.businessinsider.com/blankfein-hires-weingarten-2011-8

[Admiral Yi]

Lloyd Blankfein hired a defense attorney, and Goldman is tanking.



http://www.businessinsider.com/blankfein-hires-weingarten-2011-8

Perjury related to what, anyone know?

[MadImmortalMan]

Nobody knows yet. In a way, that's worse for the investors. Everyone is probably guessing, and people have crazy imaginations. So the selloff. I missed that trade. I saw the tweet by ZeroHedge and then clicked in as fast as I could to buy puts. But by the time I confirmed the order the price of the puts had gone a hundred bucks past my limit order. 

It still kept going down after the close.

[Admiral Yi]

Jeez, BAC is really melting down.  300 some basis points for CDS cover now.

[MadImmortalMan]

Jeez, BAC is really melting down.  300 some basis points for CDS cover now.

Yep. I'm still holding puts on BAC, so I'm completely happy. I sold a lot of calls today for ok profits and a couple things for marginal losses that I doubt are going to get any better. I'm holding back most of my cash as I raise it out of the gloom. Maybe I'll try to trade Bernank on Friday. Something will happen.

There is talk that BofA will need to be taken over by JP Morgan. Apparently Geithner had a talk with Dimon. I dunno. What will it be then... JP CountryStearns MutualAmerica?

[Admiral Yi]

I don't see how that's possible.  Either BoA or Morgan is already at the regulatory limit for market concentration.

[MadImmortalMan]

That's a supremely good question. Also, in the last hour, JPM analysts upgraded BofA and also said they would need a capital raise.

http://ftalphaville.ft.com/blog/2011/08/23/660626/jpmorgan-says-bofa-may-need-a-capital-raise/

[Admiral Yi]

I'm a little tempted to make a short term bet on BAC's upside.  The only thing holding me back is the fact that I am the worst stock picker and timer in the universe.

[citizen k]

There is talk that BofA will need to be taken over by JP Morgan. Apparently Geithner had a talk with Dimon. I dunno. What will it be then... JP CountryStearns MutualAmerica?

Too bad his #1 fan is no longer at the FDIC. Sheila take a bow, you boyfriend is Obama's favorite banker.

[Admiral Yi]

BAC up 8% today.  Too late.  Maybe.

But oddly CDS is supposed to widening.

[MadImmortalMan]

BAC up 8% today.  Too late.  Maybe.

But oddly CDS is supposed to widening.

You pretty much have to do those kind of things in an overnight trade. Buy before the market closes, let it move and then decide the next day what to do with it. The CDS does bother me, but Europe bothers me more. BAC has exposure to the hailstorms over there, so nobody knows what their assets are actually worth. Also, they write CDS contracts. So, if there is a credit event anywhere in the Eurozone BAC will have to pay out CDS redemptions. That frightens the crap out of me. The other stuff--lawsuits and such don't bother me.

I'm not trading any banks right now except some short-term puts here and there. Maybe a straddle play on Bernak's Friday thing.



Edit: If there is a good resolution to Europe's issues, I'm buying.