Fast Money

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Fast Money

Options Action: HSBC


If you think things look bad for Citi, you’d better take a closer look at HSBC.

According to Jon Najarian the options trading in HSBC looks very bad. There’s very strong put buying in this stock. And Najarian says the trend is eerily similar to options trading in Bear and Lehman.

“It’s falling off a cliff,” he says. “They are buying puts at the 50-strike, 45-strike, 40-strike. I’ll get real scared if they start buying the 20-puts because that’s the kind of pattern we saw in Lehman and Bear. They (institutional investors) are buying 50% out of the money puts.”

”Let’s hope they stop,” he concludes. In the meantime you might want to put it on your radar.


You can see our entire interivew with Jon Najarian toward the end of the Word on the Street video.

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Trader disclosure: On Jan. 12th, 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 (TM), (WMT), (MGM), (MCD), (SDS); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Najarian Owns (MS); Najarian Owns (EEM) Long Call Spread; Najarian Owns (ERTS) Long Call Spread; Najarian Owns (DNA) Calls; Najarian Owns (XME) Calls; Najarian Owns (NVLS) Calls; Najarian Own (NVDA) Calls; Najarian Owns (MS) Short Calls; Najarian Owns (VZ) Put Spread; Finerman's Firm Owns (MSFT), (DNA); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (ANF), (DSX), (BBT), (COF), (EGR)

Jon Najarian Owns (C) Preferred Stock with wires