Larry McMillan's comments on LEH this morning:
37,000 options traded, vs a normal volume of around 600. He said that this was "the highest ratio I have ever seen", and that the options were "rediculously expensive". Said that the "only voice of reason" was David Faber, and urged caution, as "things aren't usually this easy".
Caution or no, LEH is showing signs of life again. I think there could be an opportunity here, as so many people got burned that they will not be paying attention to this one.
I sold this morning, putting the proceeds into CREAF. While I feel confident about that trade, I'm not convinced now that it is any better there than having simply left it in LEH, which looks now like it may well recover all of the losses by the end of the day.
BTW, looks like some unreasoned individual or instution just picked up $3.5 million worth of LEH (91,100 shares) at the offer. |
