This is getting interesting.
Did MER really get a 70% premium? Will JPM really buy Washington Mutual, Inc. [[WM]]? I got an idea, let’s all just merge together, tonight.
Update: As I’m writing this post, it is official, Lehman Brothers Holdings Inc. [[LEH]] just filed for bankruptcy, what a sad day. I guess the fortune cookie doesn’t lie, good thing I’m short Legg Mason, Inc. [[LM]] .
Plays going forward: short Goldman Sachs Group, Inc. [[GS]] to zero, and pick up some [[SRS]] .
Current trading positions:
As for oil, it should bounce here as the dollar gets poleaxed. In that space I own National-Oilwell Varco, Inc. [[NOV]] and Tesoro Corporation [[TSO]] and plan on holding both (no panic selling at the open). I also plan to hold my position in FCX as gold looks strong.
The only position I’m worried about is Google Inc. [[GOOG]] , but I have a clear exit– a close below 410.
I’m hoping Apple Inc. [[AAPL]] takes a hit tomorrow, as that is one stock I would love to buy on a nice dip. I also have a few puts in the Q’s (thank God), but nothing in size– mainly a hedge on my two tech positions.
I wish I had a few more shorts, but I think I will make it out Ok considering the events. I have a decent cash position and will be buying [[SRS]] , “Maybe” AAPL, and more puts on [[LM]]
As for my IRA, that’s another story.
It will be an interesting day.
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