End of message
Bought some OTM BSC calls
Started by
kaiser soze
, Jul 23 2007 08:40 AM
3 replies to this topic
#2
ogm
-
- Traders-Talk User
- 13,780 posts
Member
Posted 23 July 2007 - 09:03 AM
End of message
Why ? Just to be contrarian ? Just curious.
Its one of the worst, IMO. A lot of their growth was from mortgage packaging. And do you think their Asset management business will attract a lot of new clients after this debacle ? After they mismanaged clients out of several billions into the ground ?
Its crippled big time. Besides the chart looks like crap.
Edited by ogm, 23 July 2007 - 09:04 AM.
#3
kaiser soze
-
- Traders-Talk User
- 884 posts
Member
Posted 23 July 2007 - 09:08 AM
Looked at the short interest and the put open interest. Humongous in the financials in general and BSC in particular.
That kinda of negative sentiment would make sense if one or more of these brokers is going bankrupt. Unlikely.
With BSC, some or all of the bad news is out. With others like LEH and GS, there maybe bad news waiting to come out.
It just looks like a good risk-reward ratio. I'm not shorting stock, am using calls. Its a really small position consisting of only 145 OTMs.
#4
ogm
-
- Traders-Talk User
- 13,780 posts
Member
Posted 23 July 2007 - 09:15 AM
Looked at the short interest and the put open interest. Humongous in the financials in general and BSC in particular.
That kinda of negative sentiment would make sense if one or more of these brokers is going bankrupt. Unlikely.
With BSC, some or all of the bad news is out. With others like LEH and GS, there maybe bad news waiting to come out.
It just looks like a good risk-reward ratio. I'm not shorting stock, am using calls. Its a really small position consisting of only 145 OTMs.
I remember the days, when people avoided stocks with high short interest. It was considered that there is a high short interest in the stock, then there is something wrong with it. And it was usualy the case.
Of course they are not going bankrupt, but their business is shot. They will be warning before the next quarter big time. Extent of the damage is still unknown. I'm guessing their earnings will be at least cut in half, considering slowdown in LBO's, IPO's and CDO's.
Edited by ogm, 23 July 2007 - 09:17 AM.
