Bear Stearns (fka BSC)

[AngusYoung]

Hot off the wire. Good feeling here.



Reuters
SEC probing options activity in Bear Stearns: report
Thursday March 20, 8:16 am ET


NEW YORK (Reuters) - The Securities and Exchange Commission is investigating the events leading up to the collapse of Bear Stearns (NYSE:BSC - News), specifically a surge in options contracts betting that the investment bank's share price would fall sharply, according to the Wall Street Journal
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Citing people familiar with the matter, the paper reported the SEC probe focuses on a surge last week in "put" options that came days before the firm's proposed sale to J.P. Morgan Chase & Co. (NYSE:JPM - News) for stock now valued at about $278.5 million, or $2.32 a share.

A put option allows the buyer of the option the right to sell a certain number of shares in the company at a specific price within a set time. (Reporting by Edward Tobin; Editing by Derek Caney)