Archive for January, 2009
Magnitude Of Losses At Big Financials…
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Massive Risks at America’s Megabanks
(bill. of dollars)
B of A
Citi
B of A + Citi
JPM
9/30/2008
Total assets
1,831
2,050
3,881
2,251
All derivatives
38,186
39,979
78,165
91,339
Credit default swaps
3,291
2,467
5,758
9,250
Exposure to defaults by trading partners
177.6%
259.5%
400.2%
Source: http://www.occ.treas.gov/ftp/release/2008-152a.pdf
Fact #1 - Too big to save. Bank of America Corp. and Citigroup, Inc. have combined assets of $3.9 trillion, or 43 times the size of the [...]
Quick Portfolio Update
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I bought/added a bunch of positions during this rally to the short side. Here is what the portfolios look like:
Smaller Portfolio
Apple (AAPL): 2 April 80 Puts @ $4.525 (avg.)
Goldman Sachs (GS): 2 April 65 Puts @ $8.825 (avg.)
PNC Financial (PNC): 2 May 30 Puts @ $4.90 (avg.)
Larger Portfolio
Apple (AAPL): 20 April 80 Puts @ $4.05 [...]
Stock Trade Update: Short PNC Financial (PNC)
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Short PNC Financial Services (PNC) at this level as it forms a wedging pattern. It has retraced about 50% from the lows that it formed 5 days ago. I think that (PNC) will test the lows pretty soon so I have decided to take a shot at it in the smaller portfolio.
Bought 1 PNC May [...]
4 Shorts To Keep On Your Radar…
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For the past 3-4 days, the market has been moving in choppy mode while digesting the downard pressure from early January. During this period, some of the past leaders have been moving up on declining volume indicating that there is no support from the big institution money. This makes me more inclined towards shorting these [...]
Stock Trade Update: Short AAPL And GS
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It looks like Apple (AAPL) and Goldman Sachs (GS) have hit my ideal resistance point and could be shorted here. So I have decided to buy puts on (AAPL) and (GS). Mind you, this is all in smaller portfolio so the position size might be smaller than usual. I’m not doing any trading in the [...]
