Financial stocks are going to be volatile on Monday following the Fannie (FNM) and Freddie (FRE) bailout. I am not whether this is good news or bad news but the S&P futures are up 3%+.
I don't think this changes anything so I am still going to be selling on strength in the financials. I am going sell some shallow in the money calls on positions like Wachovia (WB) or Bank of America (BAC) on the surge tomorrow. This is an opportunity to put on hedges at good valuations (despite implied volatility being low).
I don't think this changes anything so I am still going to be selling on strength in the financials. I am going sell some shallow in the money calls on positions like Wachovia (WB) or Bank of America (BAC) on the surge tomorrow. This is an opportunity to put on hedges at good valuations (despite implied volatility being low).
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