Financials are Monday’s big story with options traders drawing attention to a select few names. Is the credit crisis overblown?
Despite shake-out in the financials call volume continues to outpace put buying in Merrill Lynch (MER), Citigroup (C) and Wells Fargo (WF) says Randy Frederick, director of derivatives at Charles Schwab. That could mean there’s speculation in the market that the credit crisis is overblown, he adds.
Pete Najarian doesn’t think so. He thinks the call buying in financials is bottom picking. Don’t be the first one in, counsels Pete. “I’m waiting for the next shoe to drop.” Pete believes volatility will remain quite high for the next several weeks.
