BAC dumps 30% of its Share value in 3 days.

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NoDrama

Well-Known Member
AIG has filed suit and is suing BAC (Bank of America Corporation) for federal Bank Fraud. Apparently BAC was making loans on houses that were underwater from the origination date and had no equity to back the shortfall. Very illegal. http://www.docstoc.com/docs/88884809/AIG-versus-BAC-8-8-2011

BAC stock has gone from $9.50 to $6.80 in less than 3 trading days.

going Long on call options on BAC anyone?
 
forgetfulpenguin

forgetfulpenguin

Active Member
NoDrama said:
AIG has filed suit and is suing BAC (Bank of America Corporation) for federal Bank Fraud. Apparently BAC was making loans on houses that were underwater from the origination date and had no equity to back the shortfall. Very illegal. http://www.docstoc.com/docs/88884809/AIG-versus-BAC-8-8-2011

BAC stock has gone from $9.50 to $6.80 in less than 3 trading days.

going Long on call options on BAC anyone?
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If you wanted to make money being short in the market you should have gotten your position before the market started pulling back again not after everyone knows it's pulling back. Suckers trade on old news.

If you ask me with the low stock prices it's time to start feeling out the bottom, and look for stocks (that aren't dead money like BAC) to invest in. Granted if you were smart you'd have known this dip was coming, already made some money being short, and you'd already have a well researched list of potential investments.
 
N

NoDrama

Well-Known Member
forgetfulpenguin said:
If you wanted to make money being short in the market you should have gotten your position before the market started pulling back again not after everyone knows it's pulling back. Suckers trade on old news.

If you ask me with the low stock prices it's time to start feeling out the bottom, and look for stocks (that aren't dead money like BAC) to invest in. Granted if you were smart you'd have known this dip was coming, already made some money being short, and you'd already have a well researched list of potential investments.
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You don't know what a call option even is. I am buying the call, not writing it.

But really the whole point of the post was the news of being sued for selling mortgages that were under water. I think you missed that part and instead tried some one upmanship by trying to denigrate me by telling me how stupid I am for going short. But call options aren't going short, they are going long.
 
forgetfulpenguin

forgetfulpenguin

Active Member
NoDrama said:
You don't know what a call option even is. I am buying the call, not writing it.

But really the whole point of the post was the news of being sued for selling mortgages that were under water. I think you missed that part and instead tried some one upmanship by trying to denigrate me by telling me how stupid I am for going short. But call options aren't going short, they are going long.
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I apologize for my brash and unreasonable reply. I only skimmed your post and made a hasty assumption.

I know it does not excuse my behavior but I have been worn quite thin lately and find myself lashing out far too often. I'm afraid internet forums prove to be a convenient place to vent this. Again I apologize.
 
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maylee

Member
Bought FAS, that is a leveraged ETF for the financial sector in an account I cannot trade options in this morning.
Did call debit spread in SPY this morning.
Thinking about a put debit spread in TLT to short treasuries tomorrow.
Prop traders live for times like this:eyesmoke:
 
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