Options Action: Morgan Stanley
Worried that the banks are going to report really disappointing results this earnings season?
So is Scott Nations of NationShares!
Ahead of the broadcast he tells us that trading volume in equities would have to be a blow out in September for banks to just match the 3rd quarter of 2009.
As a result, "I want protection against the banks reporting really disappointing results with the most troubling name being Morgan Stanley," he says.
(Morgan has been making a series of lower lows and lower highs – a bearish pattern. Take a look)
What’s the trade?
Nations suggests buying a put spread for protection. Specifically, he likes the Jan. 2011 22/25 put spread.
Learn more about this trade. Watch the video now!
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Trader disclosure: On September 7th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (INTC), (MON), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Cortes owns (SFD), (BMO), (TD), (FCX), (BHP); Cortes owns the British Pound; Finerman and Finerman’s firm owns (BAC); Finerman owns (GOOG); Finerman’s firm owns (HPQ); Finerman’s firm owns (IBM); Finerman and Finerman’s firm owns (JPM); Finerman owns (ORCL); Finerman owns (POT) options; Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts
For Anthony Scaramucci
Scaramucci & SkyBridge Capital own (AAPL)
Scaramucci & SkyBridge Capital own (AMZN)
Scaramucci & SkyBridge Capital own (C)
Scaramucci & SkyBridge Capital own S&P 500
Scaramucci & SkyBridge Capital own Gold
For Heather Bellini
ISI does and seeks to do business with (ORCL) and has received non-investment banking compensation in the past 12 months
For Dennis Gartman
Funds managed by Gartman own Gold
For Ed Mills
For Scott Nations
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