GO
Loading...

Rock Bottom For Banks

Monday, 9 Jun 2008 | 6:18 PM ET
Tomorrow's Trades #1
Debating whether financials have bottomed, with the Fast Money crew.

Lehman stock tumbled Monday after the investment bank revealed it would raise $6 billion through a stock issuance to bolster its capital base after losses from trading and hedging resulted in an expected $2.77 billion second-quarter loss for the investment bank.

The put selling in Lehman suggests to me that Lehman stock might have bottomed, says optionMonster Jon Najarian on Fast Money.

But don’t confuse that with the entire financial services sector. I’d still recommend being short MBIAand Washington Mutual because the options action suggests these stocks could still move lower.

Which of the financials will be most attractive 12-36 months?

I’d go with the Financial Select Sector SPDR, replies Karen Finerman.

For my money it’s Goldman Sachs , adds Jeff Macke, but not until it slides down to $150.



















______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to fastmoney@cnbc.com.

Trader disclosure: On June 9, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (EMC), (ATVI), (INTC), (WMT), (MSFT), (DIS); Pete Najarian Owns (AAPL), (BKC), (TSO), (XLF), (HPQ), (AMLN); Pete Najarian Owns (AA) Calls, (GME) Calls; Pete Najarian Owns (LEH) Puts; Finerman Owns (GS); Finerman's Firm Owns (AAPL), (MSFT), (TSO), (VLO); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (AA), (INTC), (MER), (TIE), (TSO), (F); Seygem Asset Management Owns (EEM), (HAL), (TTM), (MBT), (GAF)

Jon Najarian Is Short (WM), (KEY)

  Price   Change %Change
GS
---
MBI
---
WM
---
SPDR FIN SEL
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report