Trading The Financials
Financials came under pressure Monday after Wachovia ousted CEO Ken Thompson. Which other banks go also go lower?
Fears that the other shoe could drop have dragged down the financials almost across the board, explains Jon Najarian. But there are two stocks that I’m watching closely.
Although it’s stock price has dropped significantly already, Monday’s options action suggests it could go even lower, Najarian says. Last week the bank admitted it underestimated its exposure to bad loans.
Bank of New York Mellon
Unusual options activity in this stock suggests to me that Bank of New York could drop short-term, says Najarian. Not only do they have the same troubles as every other bank but they’re also facing potential lawsuits.
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