Friday, March 14, 2008

The Bear Sterns Bear Trap

I knew those puts volume leading to the collaspe of Bear Stearns today was the weather forecast telling me it's raining, rather heavily, on Bear today :). What I found interesting was not too long ago (in fact, 48 hours ago.. the CEO of Bear went on CNBC to reassure everything was A-OK). Fast forward 48 hours and Bear needs liquidity. I expect S&P and Moodys to come with a downgrade rather sooner than later. The Vix spiked to 32+ so I took my SKF position off the table. I sense capitulation in the financials today. Then there's Mr Ben the Bail Out man, who's running the printing presses today to save Bear.

Positions Closed: SKF +35% Gain

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