Heads up on LEH!

[stock_trad3r]

Those who bought puts this week are screwed

 

[jsmooth]

Reuters) - Lehman Brothers Holdings Inc (NYSE:LEH - News), the smallest major Wall Street investment bank, on Monday said it <b>expected to report a second-quarter loss of about $2.8 billion, or $5.14 per share</B>, hurt by losses related to trading and hedging.

The New York-based company also said it <B>expected to raise $6 billion from public offerings of common stock and convertible preferred stock </B>to bolster its capital base

 

[makloda]

Quote from stock_trad3r:
Those who bought puts this week are screwed

What a difference a week can make!

 

[narballs]

wow on LEH jeez what volatility.. i was short LEH at 46 a while back then hit my exit at 48 and got stopped out... Shoot

 

[prc117f]

There is a lot of volume for premarket for LEH.

 

[prc117f]

29.70 35606 on my tape display weird.

 

[wilburbear]

LEH makes a big deal out of buying their own stock at 32-33 last week. And now they sell their own stock at 28 to raise capital. It's the inverse arbitrage!

 

[Cutten]

Quote from Rearden Metal:

What I meant was; Back when BSC was still at 60-something, I'm sure that top FA experts could have put forth rock solid reasoning as to why BSC <i>might</i> soon collapse.
However, they could have also simultaneously applied that <b>exact same reasoning</b> toward 20 other financials that didn't go belly up. I really doubt it was possible to specifically single out BSC based on publicly disclosed info alone.

That's not true. BSC had a much more leveraged balance sheet, and the most exposure to subprime of any of the main firms on Wall Street. It was the most vulnerable to any subprime collapse. This was publically available information. People specifically shorted BSC last year because of this.

Nice call on LEH so far

 

[Rearden Metal]

Actually, now that LEH is lower than when I made that 2nd call, this is my chance to semi-gracefully back away from it.

That day last week when it plunged from 35 to 30 on massive volume & puts- The insiders were pricing in <i>something</i> that day... but now I believe that mystery <i>something</i> was merely today's lousy, yet non-fatal news... not insolvency.

Flat, Mortimer Flat!

 

[mokwit]

Quote from Rearden Metal:

Actually, now that LEH is lower than when I made that 2nd call, this is my chance to semi-gracefully back away from it.

That day last week when it plunged from 35 to 30 on massive volume & puts- The insiders were pricing in <i>something</i> that day... but now I believe that mystery <i>something</i> was merely today's lousy, yet non-fatal news... not insolvency.

Flat, Mortimer Flat!

The same SEC that was going after the "shorts" is now nowhere to be found.