Options Action: Morgan Stanley
By: Worried that the banks are going to report really disappointing results this earnings season?
So is Scott Nations of NationShares!
| Price | Change | %Change | ||
|---|---|---|---|---|
| MS | --- |
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
***No Disclosures***
For Scott Nations
***No Disclosures***
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