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Merrill Lynch shares jump on asset sale rumors.
More reason my gut could be right. That insane put activity was manipulation. I dont plan on holding long. Look at my name for crying out loud. lol
http://www.reuters.com/article/hotStocksNews/idUSN2039698420080320
Thu Mar 20, 2008 11:47am EDT
NEW YORK (Reuters) - Shares of Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research) rose nearly 6 percent on Thursday morning amid rumors the largest brokerage in the world was looking to sell off assets.
Selling assets could shore up Merrill Lynch's balance sheet, which would please investors shaken by a recent run on the bank at Bear Stearns Cos (BSC.N: Quote, Profile, Research) once the fifth-largest U.S. investment bank.
"There has been some rumors out there that Merrill might consider selling some assets which would be perceived as a positive," said William Lefkowitz, options strategist at brokerage firm vFinance Investments.
A spokeswoman for Merrill Lynch declined to comment, citing a policy against commenting on rumors and speculation.
The jump comes a day after Merrill Lynch shares fell 11 percent, after the investment bank said it was suing XL Capital Assurance Inc, a unit of Security Capital Assurance Ltd (SCA.N: Quote, Profile, Research), to prevent the bond insurer from backing out of credit guarantee contracts.
Merrill Lynch shares rose to $43.84 on the New York Stock Exchange.
Merrill invests Rs 400cr in DRS Group
21 Mar 2008
What I don't get is, if Merrill is the #1 "worldwide" bank how would they go bankrupt and close shop? That means everywhere around the globe business would be closed?
I'm guessing maybe a buyout from another bank is coming. But it's hard to believe the #1 largest bank is being bought out, usually it's the other way around.
http://timesofindia.indiatimes.com/Merrill_invests_Rs_400cr_in_DRS_Group/articleshow/2885749.cms
BANGALORE: Global investment banking giant Merrill Lynch has invested Rs 400 crore into a special purpose vehicle (SPV) floated by Hyderabad-based logistics player DRS Group. This is said to be the largest single round of equity funding into this sector. "We have signed a deal with Merrill Lynch," confirmed A K Agarwal, director (marketing) of DRS Group.
The SPV will fund the development of over 3.5 million sqft of warehousing space across the country in the next two years as well as other projects planned by the DRS Group. The logistics firm is looking to set up a Rs 70 crore Logistics Park, spread over 43 acres on the Hyderabad-Nagpur highway.
The company has plans to diversify its logistics services into shipping, railways and air cargo.
Last year too, DRS had raised Rs 100 crore from PE players. India’s retail boom is driving the warehousing and logistics sector to record a compounded annual growth rate of 30%.
This has encouraged private equity players to invest in the sector. IDFC PE Fund II invested Rs 110 crore in Sical Logistics, Sidbi Venture Capital invested $2.2 million in Direct Logistics, Reliance Capital invested Rs 50 crore in BLR India, New Vernon invested $13.3 million in Allcargo Movers and IDFC PE invested $10 million in Delhi Assam Roadways.
Interesting also that Merryl Lynch reports earnings around April 15th. Weren't those April puts being gobbled up at $30 and even $15??? I got some 15 puts.
Today S&P downgraded GS(Goldman Sacks) and LEH (Lehman Brothers) but held their status on Merryl for now.
Interesting. I did find it baffaling how it happened so fast. Usually companies will announce it, then vote on it or just have some kind of rumor or something.
This was like bang, done. Obviously there was talk before hand.
Not fair to the workers / shareholders.
Bear Stearns - "BSC" March Option Info:
Taken from this video:
Perfect. I must have not scrolled down enough and missed it.
So I am wondering now if Merryl Lynch is next. Did you grab some put options??
It's too easy and too good to be true so I doubt anything bad will happen.
Unless we hear about a 30 billion write down or something.
Bear Stearns YouTube Videos: Some cool stuff to watch and listen to before the day unfolded.
3-11-08:
Were BSC puts bought up by insiders?
http://optionmonster.com/#commentary/in_the_news/were_bsc_puts_bought_up_by_insiders_23549.html
Since it's well known that institutions (and also insider traders) use options because the leverage can provide unbeatable return on investment, a time-honored way to trade is to piggyback the so-called
smart money.
That approach has been newly vindicated by last week's Bear Stearns trading. This morning in the Wall Street Journal (subscription required), we read:
"Some analysts who follow the moves of short sellers, or those who bet against stocks, say a big spike in short positions in recent months suggests that some investors might have been privy to information about the brokerage firm's growing difficulties, or acted more quickly to wager against Bear Stearns compared with other financial companies. The Securities and Exchange Commission is investigating a spike in options contracts before the collapse in Bear stock."
Here at optionMONSTER, we look for unusual activity every day. Thus when we spotted BSC at 70 and put buying the 30 and 35 strikes, we sprung into action. As we wrote:
"What the options are saying now is: if BSC survives for another week through March expiration, the company will be bought. ...Why? The spread [in out-month trading] is just too small. When investors compress the time value, or sell the out-month calls or puts and buy the shorter dated options, they are saying they believe the likelihood of a takeover is high."
The question of whether it was “smart money” or insider trading is one we will leave to the lawyers. But the option actions was there to see, and to profit from, in a nice, legal way.
Nice move on PLUG up 18%! No real news.
You tell me after the market is closed? LOL Totally missed it, not even on my radar anymore. But may be worth putting it back on after a move like this. Thanks. You in?
Hey, thanks for digging these up and providing the links. Well worth the read again. Amazingly even with that news out "no value" in July and the other bad stuff, the stock went from $99 to $132 in August.
I wanted to know about suspicious activity regarding options before they dropped 70% and the JP Morgan buyout news.
You said you saw something?
Makes me believe its manipulation for sure. Its like people are looking for that and so they juiced up the put options to take your money and to get people to short.
It's too obvious for it to happen like that again. you know? MER Up 12% now. Looks strong.
Shorts are covering cause they know, the specialist just took some shorters for a ride.
Really? Cause right about now I'm down 50% on a put option. lol
I'm beginning to think it was manipulated and a mind game to draw people to throwing money into a put of short and all they wanted to do was raise the stock price.
Up 9% today.
Probably a game. I missed the BSC suspicious activity so I can't compare. Do you remember?
~~~~~~~COMPX 03/20/2008~~~~~~~
Previous Close 2209.96 -58.30
2242 FinancialAdvisor
2227 QT
2165 SSKILLZ1
2122 timhyma
MER April Options Screen Shot:
Did you see MER put action today????? For April Options. WTF is that about? 72,000 volume on the $30 strike open interest is only 17,000. 16,000 volume for the $15 puts????? Open interest is only 317. Look at the other strikes. This is sick.
Even the $5 strike has action. Looks almost fake.
Stock closed at $42.30
29 more hours for Coco to hit $10. LOL Ok I'll stop. I'll take $9?
I know what you mean. I've been following FCEL & PLUG since 2001. Mostly PLUG and each time you think it will sustain an uptrend with a bright future..it fails. Happens all the time.
Rest Assure we'll be seeing highs again soon.
I think if Clinton goes into office for sure.
The demand isn't as big as solar but we sure need fuel cells for cars.
No demand for the stock at this poitnt
macd is scary on Gold. Looks like it wants to tank like no tomorrow. Had GG $40 puts for 2 weeks. Bid yesterday was .05. Sold them today at $1.50. Gees.
~~~~~~~COMPX 03/19/2008~~~~~~~
Previous Close 2268.26 +91.25
2354 SSKILLZ1
2272 QT
2237 timhyma
Amazing. Hey -- Do you get that feeling that we didn't drop enough. Like there weren't enough people knowing how bad the economy is?
I feel like we needed to stay bearish for like 6mths to a year before we bottomed.
Or is it like you're saying..parabolic then sell in May.
Nasdaq needs to go up 26% to get back to the all time highs of 2256. Another few more days like this and we'll be close. Gees. Up 4.2%!
Gees Feb 4th, last post here. lol Did FCEL put a bottom in today. Long tail. CLosed up 7% to $5.98 after making a new 52wk low at $5.43
LOL, yup..up 300 points an hour ago to up 168 now. I see the Bears growling!!
But it's only right if this country will get back on track.
Good for them 3/4 cut not full. You gotta be crazy for a full basis. Inflation will hurt consumer.
Cutting rates does not help the consumer. 5 minutes to decision. I seriously hope they fight inflation/commodities which is waht hurts the consumer!!
Whats wrong with them??
Last week a Dow 400 point gain faded away. Be prepared. Up 286 now.
Wow. Can you just imagine the markets closing down? Every stock I see is up over 4% practically. Markets up over 2%. Can you just imagine? Then it will feel like the end of the world for sure.
Question is: What will have to happen for markets to close down today? No cut??
~~~~~~~COMPX 03/18/2008~~~~~~~
Previous Close 2177.01 -35.48
2222 FinancialAdvisor
2210 QT
2201 SSKILLZ1
2195 BullNBear52
2184 timhyma
We said that about Bear Sterns and banks past year too. lol
Was that the big scare today? The one everyone was waiting for for 3 weeks?? Now we move up finally? Making new highs again?
Will homebuilders be next to crumble? KBH: Closed down 9% today to $21. The question is, is it worth it for them to start building again when buyers still can't get loans. Rates can go to 0, it does not matter. Banks need to loosen up and we know that won't happen.
So is KBH a screaming put or short??
Sweet. Congrats and awesome move to get the put on Friday. Good vision. Take a vacation now. Unless you think Homebuilders are next. :)
Hey, do you happen to know if you are up on an option (meaning have profit) and you let it expire Thursday..do you lose what you put in or do they excersize it at the bid or something?
Trying to figure out if I hold it till next week if I'll end up with a profit or do I need to sell before Thursday???
LEH - Lehman Brothers down 33%. I looked at the chart last night after you mentioned they might be next and I liked the downside to this one.
So I was hoping to buy the puts this morning. I opened up my streamer and it was down 15% at 6:30am.
Now I look again and it's down 33%.
Dammit. Another boat missed?
Morgan Stanley seems down hard too this morning. Now Merryl down 18%.
Geesus.
Curious to see what BearSterns put options open up as. Probably +3000%. Dam. BSC down 88%
BSC Down 88%. Curious to see the Put options. I'm sure they'll be up like 2,000%. So sick. Dammit
~~~~~~~COMPX 03/17/2008~~~~~~~
Previous Close 2212.49 -51.12
2175 SSKILLZ1
2144 timhyma
2132 BullNBear52
2121 FinancialAdvisor
2111 QT
Dow Futures down almost 300 points, S&P down almost 3%, Nasdaq Futures down 45 pts 2.65%. How can I sleep? So much happening this week!
Thanks, I opened my streamer back up just to add it into my watch list. No volume at all but Bid $.90 Ask 1.15