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put options on "bouncing" subprime players

posted 01/19/08 03:12 AM | Viewed 301 times
Any ideas on companies to short with put options that are on an undeserved bounce?  I've made good money with put options after a bounce in the price of CFC, LEH & DHI.  I'm looking to get into some put options on WaMu on Tuesday.  Any other ideas?  What stock has gained on the most hot air and lies in the last week?  WaMu leads my list, but I'm open to others.  I'm looking for April thru June options, so I have some time horizon to wait out.  Will WaMu even exist in June? (yeah probably) And who's betting CFC will be around much longer than that? (not me)

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Edited by lumburg at 10/07/08 10:20 PM
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snowman

Member since: Mar 07
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Construction Union
Age: 40's
Pittsford , NY UNITED STATES
snowman
Posted January 20, 2008 (03:01AM)
HBC, stay away from WM and CFC. Play March you can always roll them to the next month need be. Long term puts are wasting good money, unless you buy leaps deep in the money.
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snowman

Member since: Mar 07
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Construction Union
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snowman
Posted January 20, 2008 (03:26AM)
Do your own research, but if you check you will see that they were one of the major lenders to sub-prime companies via credit lines of which over 700 went BK. On top of that the bank of China regulators announced yesterday that they had over 118 billion in FRAUD. This Fraud problem is not isolated to the US and when it comes out in Asia, watch out. You may want to consider shorting the index's over there. Calpers (one of California's largest funds) announced in DEC. they were pulling 10% of their holdings out of the stock market. They are 3% owners of HBC and have been feuding with board over pay and threatening to pull out. There are also many other reasons I have for buying puts, but my feeling is they are the safest play out there. My trades are certified, I retired November, yet I could not stand by and let this one get away after all the reasearch I did. It is like taking candy from a baby.
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lumburg

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lumburg
Posted January 23, 2008 (11:22PM)
How about some put options on the homebuilders?  BZH, PHM, HOV & MTH are up 20-25% today????!!??  Who believes their trouble is over?  Most of the gains held up in afterhours--we'll see in the morning.  I can't decide who to move against and I don't have the time to research it tonight.  Plus, I like everybody, would like to see the market settle down a bit before putting more money on the line.
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babyface

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babyface
Posted April 01, 2008 (03:41PM)
Any thoughts on the TMA.F ?  Will it water down TMA.
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