Rock Bottom For Banks

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.

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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)