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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: Mark Johnson who wrote (618)	8/6/2007 3:59:35 PM
From: Mark Johnson	Read Replies (1) \| Respond to of 652

Dead cat bounce on CFC today. Still one of the biggest mortgage lenders out there but I don't think their problems are resolved but I would think things may begin to stabilize. Shorting the August 32.5 calls at 20 cents and the 35 calls at 10 cents seems pretty good trade. Only 2 weeks left to expiration. Also, shorting the September 7.5 puts from 30 to 40 cents seems ok. I am not a big fan for shorting puts. If CFC drops below $17 per share, cover the short, if not sooner. Shorting the calls seems to be the best I think.