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The Bank Trade - After The Bailout

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Published: Thursday, 25 Sep 2008 | 6:49 PM ET
Lee Brodie By:

Producer

If you’re old enough to remember the original “Poseidon Adventure” then you know, “there’s got to be a morning after.”

Come to think of it, that movie resembles the current crisis in more than a few ways. I mean, the damage was pretty severe and by the end of it, not everyone survived.

But like we said up top there’s got to be a morning after and when the dawn does break, here’s how to trade.

Pete Najarian

I am a big fan of the huge asset acquiring banks, says the Pit Boss. JP Morgan, Credit Suisse , Deutsche Bank and Bank of America are all attractive.

Guy Adami

I also like banks, adds the Negotiator. The weak will get weaker and the strong will get stronger. I’d look at US Bancorp and Wells Fargo .

Jeff Macke

If you do decide to get into stocks you have to be patient. A market that is functioning well doesn’t need this kind of intervention.

What Do You Think? Tell us now!


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Trader disclosure: On Sept 25, 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 (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (MSFT), (NUE), (INTC); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (WM), (DELL), (PM); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF); Najarian Owns (NOK); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BBBY) Put Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (XLF) Call Spread

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What's your first bank trade if and when a bailout plan is passed?
  Price   Change %Change
BAC ---
CS ---
DBK ---
JPM MLP ETN ---
USB ---
WFC ---

   
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  • Lee is host on CNBC's “Fast Money,” and “Options Action.”

  • Wapner is an award-winning reporter and the host of "Fast Money Halftime Report." He has also reported documentaries for CNBC.

  • Adami is a contributor on CNBC's "Fast Money." He is also 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

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