I can’t imagine why an investor would buy Lehman, says Guy Adami. And quite frankly I don’t think there will be a takeover.
From the options action I see, says Jon Najarian, I’m not seeing investors betting Lehman will go higher. They’re merely betting on stabilization.
Among the few gainers on the day were home finance firms Fannie Mae and Freddie Mac, which reversed large losses suffered last week on speculation a possible government bailout could wipe out shareholders.
-----------------------------------
GOLDMAN BREAKING DOWN.
Technical analysis suggests that Goldman is breaking down. The stock crossed $160 to the downside.
The best of breed names need to start working before the market can move higher, says a frustrated Joe Terranova.
Ironically Goldman picked Morgan Stanley as the stock that could weather the crisis better than anyone else because of the mix in their portfolio, says Pete Najarian.
I like Morgan Stanley more than Goldman, adds brother Jon Najarian.
I’m long Goldman with AIG puts against it, reveals Joe Terranova.
-----------------------------------
OPTIONS ACTION: SUNTRUST & WELLS FARGO
Jon Najarian is seeing unusual options action in SunTrust and Wells Fargo.
Options action suggest that investors are making bets to the downside, but they’re small moves. Investors seem to think these stocks could drift lower through the first week in September but they’re both solid banks.
I’d look at USB , adds Guy Adami. I think it’s a best of breed play.
-----------(for more trades scroll down)----------------------
-----------------------------------
TROUBLING TECH TRADE
Technology shares also fell on Monday amid concerns about the global economy. Apple was the top pull on the Nasdaq. Ninety-seven of the Nasdaq 100's stocks were in the red on the day.
The tech trade could be AMD , says Guy Adami. Although the company looks like a train wreck it doesn’t mean the stock can’t go higher.
I’m seeing unusual activity in Rambus, says Jon Najarian. Options are moving like the stock could explode to the upside.
I like Hewlett-Packard , says Pete Najarian. I think the EDS acquisition will start putting money in their pocket. Also, watch the VIX , he adds. The volatility jumped on Monday.
-----------------------------------
MOST `FOR SALE' SIGNS EVER
New data shows the inventory of homes for sale rose to a record 4.67 million in July while lower prices also bruised sentiment.
I give it at least 6 more months before the sector bottoms, says Pete Najarian.
I think the most interesting news out of the sector was Morgan Stanley saying they like Lowe’s over Home Depot, says Guy Adami. Personally, I think HD stacks up nicely right here.
-----------------------------------
TROPICAL STORM BOOSTS OIL
Oil rose on Monday as Tropical Storm Gustav formed in the Caribbean, stirring concerns that it could disrupt oil and natural gas output in the Gulf of Mexico as it moves northwest.
The volume in oil trading was down substantially, says Joe Terranova. I think you should stay out of crude futures as well as oil stocks for the short term.
-----------------------------------
OPTIONS ACTION: TITANIUM TRADE
Pete Najarian is seeing unusual options action in Titanium Metals .
The volume of call buying suggests to me that this stock could go higher.
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.
Trader disclosure: On Aug 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; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (CSCO) Call Spread, (RIMM) Call Spread, (TIE) Call Spread; Pete Najarian Owns (AAPL) And Is Short (AAPL) Calls; Pete Najarian Owns (XLF) And (XLF) Puts And Is Short (XLF) Calls; Pete Najarian Owns (LEH) Put Spread; Pete Najarian Owns (MS) And Is Short (MS) Calls; Jon Najarian Owns (AAPL), (C), (RMBS); Jon Najarian Owns (TIE) Calls; Jon Najarian Owns (BRCM) Call Spread; Jon Najarian Owns (LEH) Put Spreads, (STI) Put Spreads; Terranova Owns (YHOO), (AAPL), (RIMM), (SA), (VLO), (EOG), (NOV), (POT), (X), (KOL), (GS), (FCX); Terranova Owns (AIG) Puts
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BRE), (CNTY), (CLB), (OFC), (DLR), (ESS), (EXR), (FL), (IAT), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (SKT), (BLV)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO: Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
(AIG), (AMP), (GNW), (HIG), (MET), (PFG), (PL), (PRU) Is Or Was In Last 12 Months A Client Of Credit Suisse; Credit Suisse Provided Investment Banking Services To (AIG), (AMP), (GNW), (HIG), (MET), (PFG), (PL), (PRU) In Past 12 Months; Credit Suisse Has Managed Or Co-Managed A Public Offering Of Securites For (AIG), (AMP), (GNW), (HIG), (MET), (PFG), (PL), (PRU) In Past 12 Months; Credit Suisse Has Received Investment Banking Compensation From (AIG), (AMP), (GNW), (HIG), (MET), (PFG), (PL), (PRU) In Past 12 Months; Credit Suisse Expects To Receive/Seek Investment Banking Compensation From (AIG), (AMP), (GNW), (HIG), (MET), (PFG), (PL), (PRU) In Next 3 Months; Credit Suisse Has Received Non-Investment Banking Compensation From (AIG), (AMP), (GNW), (HIG), (MET), (PFG), (PL), (PRU) In Past 12 Months
GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC