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where do they get the cash to be leveraged X25? thats like getting a $625,000 loan secured by a mid-size SUV. Who puts up that kind of money?

really though....who is buying? who woke up this morning and thought to themselves "hey I'm gonna go long some Lehman today"...so lehman sells some preferred and all of the sudden there books are sound? everyone else is buying to it must be the right thing to do...who thinks like that?

the market's smoking crack.

Financials are up? How does that make sense? It doesnt seem like there have been enough write downs. Think of ALL the 2nds and HELOCS that lehman and wells closed...not to mention the pay option arms closed by Deutsche bank. These 2nds and piggyback almost always went up to 100% LTV. If home...

I was a mortgage broker for a while and trust me lehman bought ALOT of subprime and no-doc loans. Is there a way to find out what a company like lehman really has on its books as far as types of loans? I always here some guy on CNBC say so-and-so was a large buyer of subprime loans. How do...

Is there one around? I hope so b/c i dont know what the hell you guys are talking about half the time.

Good point. I guess panic is something we can always count on, as well as greed...if we could only figure out how to trade those! haha No doubt. I'm short all the financials as well. Have taken a hit in the past few days, but i believe we will ultimately get paid off.

Once again I'm not saying BSC didn't have this coming. The rumor was about illiquidity not about things being worse than they appeared to be. Thats why the Alan Schwartz came on CNBC and said there was no liquidity crisis etc. I dont think BSC was a victim per se b/c of there exposure to the...

I'm not sure how you made the jump from BSC's shortcomings to mine, but anyways...I'm not in college. I'm 20 and I'm a real estate developer in CO. Am i naive? Maybe. Lets assume for a second that you are right. BSC's was too heavily exposed to defaulting sub-prime loans and was headed for BK no...

It's obvious now the the initial demise of bear stearns was caused by conjecture and rumor. Isnt there a significant possibility that these rumors were in fact the orchestration of a bear raid by hedge funds and the like? If so I think the regulatory bodies and american people will demand more...

if you dont mind me asking when did you buy the april 125s?

THE SUSPENSE!

i straddled it. we'll see what happens.

To be honest i didn't know there was an actual term for buying both ends, it was just something i thought was my original idea until i read about straddling haha. for example, one could possibly straddle RIMM today? RIMMs volatility seems somewhat low considering its earning day and all.

Can it be profitable to buy a call option and then a put option on the same stock if you anticipate a big move in either direction? lets assume the IV was relatively low on both options. if the stock does move a lot in one direction it seems like the gain you would realize on one end would...

awesome. im going to check all those out. i dont want anyone to know anything i dont. thanks fellas

Thanks for all the great info. Im pretty sure i have a good idea how to determine the hypothetical price of an option now. whew. im still a little confused on implied volatility, i can see them, but im not sure how to tell a "high" volatility from a low one. is there a par volatility for a...

Best way to become an expert on it? I know there are numerous resources on the internet (including ET), but is there anything you guys recommend as a must have for stock analysis? websites or books. im thinking of getting security analysis by ben graham, any other suggestions? i really want to...

thanks for clearing up IV for me, although im still not exactly sure what a high or low IV looks like. however im wondering is a delta of .1 or .2 bad if you only paid $0.10? wouldnt you be making 100% per dollar the underlying stock went up? or am i misunderstanding delta? for example lets...

wow that cleared a lot up for me. is there a way to find out the delta of an option? i appreciate everyone taking the time to explain.