I sold some Lehman Apr 35 put options that I bought late yesterday @ $2.60
Sold them @ $4.00 shortly after the open this AM:
Quote:
LEH Apr 35 Put OPRA: +LYHPG | Research the underlying symbol
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$3.70 -0.80 (-17.78%) Buy Sell Set Triggers View Option Chain
Implied volatility: 146.43Time value: 3.70Days to expiration: 22
Quote detail
Bid 3.65 B/A size 102X137
Ask 3.75 Last size 5
Last 3.70 Last trade Fri Mar 28 2008 14:42:57
Change -0.80 Open 3.80
Change % -17.78% Close 4.50
Volume 7,499 High 4.10
Open interest 50,156 Low 3.10
Exchange OPRA Asset type Option
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All of the brokerages are "short plays", now....here's why...unprecedented since the depression....more regulation translates to bringing their leverage down to the level of the regulated banks who also get to use the Fd discount window. Banks leverage limit is 7:1, Bear and Lehman are at 30:1 .
http://news.google.com/news?hl=en&ie...=1&sa=N&tab=wn
Brokerages can choose to stop dropping their crap collateral off at the Fed discount window in exchange for borrowed T-Bills loaned to them at the face value of the near worthless MBS they put on the FED (i.e., on the taxpayer)
....T-Bills sold into the market (short sales, since they are borrowed from the Fed...) or, if they won't accept de-leveraging, they can get along in the free market, and go BK like Bear would have without a JP Morgan fronted, Fed nationalization......