Open: HBC BRCS Feb 09 40/45

Note: I this order was filled yesterday (Monday).

I’ve watching this stocks options activities for a week now and the PUT action is incredible.  The big guys are buying huge volume of March puts ranging from 45 -25 strikes.   I’ve seen this action before in LEH, BSC, MER, STT, MS  and other financial over the last year.  It’s a precusor to a bear raid.

The bear raids in the financial stocks are VISCOUS!   Since I rarely short stock directly I will use a bear call spread.  I sold the spread when the stock was about 49.50.

The Trade:  Credit 2.15

Sell open: Feb 40

Buy open: Feb 45