Hey guys, any comments on why there are so many July 55 puts on COF - according to OptionMonster.com as of this recent Friday?
It was number one on their "Biggest Trades List."
What are your thoughts? Note: I think you have to get their free subscription to see this, not sure though. I have no connection with optionmonster. But I am considering getting into COF, either long or short.
The other shoe is about to drop. The difference between this recession and the last is that oil is $126 per barrel instead of $26 per barrel. Oil + unemployment + value loss on homes = inflation & big trouble for the consumer (which by the way accounts for 2/3 of GDP!) The idiots who have been keeping the stock market rallying are stepping out. They finally see the worst of the credit crunch is still ahead of us.
Look for bad news on LEH in the next two months. Their CDS spreads have widened, the bastards refused to write-down the value of billions of their subprime exposure in the last quarter. When they do write-down it's going to be huge. A mini-BSC type panic will probably occur. I think LEH will survive but it's going to be a bumpy ride for the market. COF and every other financial will get pulled down with it.