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.